E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 32279 to Sustain Momentum

March E-mini Dow Jones Industrial Average futures hit another record high on Thursday as investors celebrated President Joe Biden’s signing of his $1.9 trillion coronavirus relief package into law. Stabilizing Treasury yields, upbeat weekly initial claims and a continuing rebound in technology-related shares also support the rally.

At 20:11 GMT, March E-mini Dow Jones Industrial Average futures are trading 32506, up 227 or +0.70%.

President Biden signed the stimulus relief package into law on Thursday afternoon. The plan will send direct payments of up to $1,400 to most Americans, and will also put nearly $20 billion into COVID-19 vaccinations and $350 billion into state, local and tribal relief.

The 10-year Treasury yield, which had retreated from its recent high of 1.6%, was little changed at 1.52% on Thursday.

In economic news, the Labor Department reported that first-time filings for unemployment insurance in the week ended March 6 totaled a seasonally adjusted 712,000, below the Dow Jones estimate of 725,000.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend resumed earlier in the session when buyers took out 32373. A trade through 30512 will change the main trend to down.

The minor trend is also up. A trade through 31727 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 31727 to 32641. Its 50% level at 32184 is the nearest support.

The second minor range is 30512 to 32641. Its 50% level at 31577 is another potential support price.

Short-Term Outlook

The direction of the March E-mini Dow Jones Industrial Average into the close on Thursday will be determined by trader reaction to 32279.

Bullish Scenario

A sustained move over 32279 will indicate the presence of buyers. If this move generates enough late session momentum then look for a move into the intraday high at 32641. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 32279 late in the session will put the Dow in a position to post a potentially bearish closing price reversal top. The first target is the minor pivot at 32184.

If 32184 fails, we could see the start of a steep correction with the second pivot at 31577 the next likely target.

For a look at all of today’s economic events, check out our economic calendar.