E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 36347 Sets Tone into Close

March E-mini Dow Jones Industrial Average futures are trading slightly lower on Friday after clawing back most of its earlier losses. The blue chip average is up about 19% for the year, putting it on pace for its third consecutive yearly gain. Home Depot and Microsoft have led the Dow gains, rising more than 50% each.

At 15:29 GMT, March E-mini Dow Jones Industrial Average futures are at 36251, down 40 or -0.11%. This is up from an intraday low of 36121.

The E-mini Dow in 2021 was supported by encouraging news on the pandemic and highly accommodative fiscal and monetary policies. But many investors and strategists expect tougher conditions next year as the Fed pulls off its pandemic-era easy monetary policy and addresses persistent inflation.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum shifted to the downside earlier today when sellers confirmed Thursday’s closing price reversal top.

A trade through 36572 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 34547 will change the main trend to down.

The first minor range is 36572 to 36121. Its 50% level at 36347 is potential resistance.

The second minor range is 34547 to 36572. If the downside momentum continues then its 50% level at 35560 will become the first downside target.

The short-term range is 33860 to 36572. Its 50% level at 35216 is another potential downside target.

The main range is 33300 to 36572. Its retracement zone at 34936 to 34550 is a value zone. It is controlling the near-term direction of the market.

Short-Term Outlook

The confirmation of the closing price reversal top does not change the main trend to down, but it could trigger the start of a 2 to 3 day correction with 35560 the first potential downside target.