E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Profit-Taking Helps Form Minor Top

March E-mini Dow Jones Industrial Average futures are trading lower late Monday but trying to claw back those earlier losses into the close. Stocks slipped off Friday’s record high partly on caution over rising coronavirus cases globally while elevated Treasury yields continued to support the U.S. Dollar, which touched its highest level in two and a half weeks against a basket of major currencies.

At 20:39 GMT, March E-mini Dow Jones Industrial Average futures are trading 30866, down 127 or -0.41%.

Investors are also booking profits as they awaited the start of earnings season later this week while keeping a cautious eye on events in Washington. The unofficial start of the fourth quarter earnings season is Friday when banks such as JPMorgan report results.

Meanwhile some investors worried stimulus may be delayed as House Democrats introduced a resolution to impeach U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol by his supporters.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 31148 will signal a resumption of the uptrend. A move through 29318 will change the main trend to down.

The minor trend is also up. A trade through 29760 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 29760 to 31148. Its 50% level at 30454 is the first downside target.

The short-term range is 29318 to 31148. Its 50% level at 30233 is additional support.

The main support is 25872 to 31148. If the main trend changes to down then its retracement zone at 28510 to 27887 is the primary downside target and value zone.

Short-Term Outlook

A new minor top was formed at 31148 on Monday. This suggests the buying may be slowing or the selling pressure increasing.

Since the main trend is up, buyers could step in on the first tests of the 50% levels at 30454 and 30233.

Investors could start getting a little nervous about the long side if 30233 fails as support. This could trigger the start of an acceleration to the downside since the daily chart indicates support is widely spaced at 29760 and 29318.