The upside momentum is expected to continue over the short-run as long as 31727 holds as support.
March E-mini Dow Jones Industrial Average futures are surging late in the session on Wednesday, helped by a government report showing tame inflation, a drop in Treasury yields after a 10-year Treasury auction was met with adequate demand and the news that the housed passed President Joe Biden’s coronavirus-relief bill.
At 19:33 GMT, March E-mini Dow Jones Industrial Average futures are trading 32330, up 519 or +1.63%.
The main trend is up according to the daily swing chart. The uptrend resumed early Wednesday when buyers took out yesterday’s high at 32118. The main trend will change to down on a trade through 30512.
The minor trend is also up. The new minor bottom is 31727. A trade through this level will change the minor trend to down and shift momentum to the downside.
The new minor range is 30512 to 32346. Its trailing 50% level at 31427 is the nearest support. This level will move up as the Dow moves higher.
The upside momentum is expected to continue over the short-run as long as 31727 holds as support.
The worst case scenario for the bulls on Wednesday will be a close under 31811. This would form a potentially bearish closing price reversal top and signal that the selling is greater than the buying at current price levels.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.