E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Record High Close on Robust Economy Bets

March E-mini Dow Jones Industrial Average futures are trading higher late in the session on Tuesday, bolstered by a rise in crude oil prices and increased demand for bank stocks. Gains were likely limited by a report that showed U.S. manufacturing slowed last month and COVID-19 spread. Technology-related shares also kept a lid on prices.

At 20:22 GMT, March E-mini Dow Jones Industrial Average futures are at 36724, up 269 or +0.74%.

Oil prices rose on Tuesday as OPEC+ agreed to stick to its planned increase in output in February. Oil company Chevron posted a 1.95% gain on the news.

Bank stocks jumped as investors geared up for rate hikes from the Federal Reserve by mid-year to curb stubbornly high inflation. Investors bet that higher rates would lead to higher earnings. Shares of Goldman Sachs and JPMorgan Chase rose 3.13% and 3.87% respectively.

Technology shares weighed on the benchmark average with Microsoft Corp dropping 1.60% and Apple off by 1.05%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 36804 will signal a resumption of the uptrend. A move through 36120 will change the main trend to down.

The new minor range is 36120 to 36804. Its 50% level at 36462 is the nearest support.

The short-term range is 34547 to 36804. If the main trend changes to down then the selling pressure could extend into its 50% level at 35332.

The main range is 33860 to 36804. Its retracement zone at 35052 to 34639 is the major support zone. It’s controlling the near-term direction of the E-mini Dow.

Short-Term Outlook

The direction of the March E-mini Dow Jones Industrial Average futures contract into Tuesday’s close is likely to be determined by trader reaction to 36120.

A sustained move over 36120 will indicate the presence of strong buyers. A close under this level will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

Due to the prolonged move up in terms of price and time, the E-Mini Dow is now inside the window of time for a closing price reversal top. Since there is no resistance at an all-time high, this chart pattern is likely to trigger the next meaningful sell-off.