E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sellers Eyeing 34815 – 34457

March E-mini Dow Jones Industrial Average futures are trading lower on Tuesday, but the damage is not as bad as the benchmark S&P 500 and the tech-driven NASDAQ Composite. This is because the blue chip average is getting some support from bank stocks, with Goldman Sachs and JPMorgan Chase adding more than 1%.

Nonetheless, the E-mini Dow is still feeling pressure due to new inflation data that showed a sharp rise in prices and concerns over the rapidly spreading Omicron coronavirus variant. Investor sentiment was also dented ahead of a potential decision on faster tapering from the U.S. Federal Reserve on Wednesday.

At 18:53 GMT, March E-mini Dow Jones Industrial Average futures are trading 35368, down 175 or -0.49%.

In stock related news, Apple Inc fell 1.6%, but stayed on track to become the world’s first $3 trillion company by market value. Microsoft was also a drag on the E-mini Dow, falling more than 4%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending lower following the formation of yesterday’s closing price reversal top.

A trade through 36030 will negate the closing price reversal top and change the main trend to up. A move through 33860 will signal a resumption of the downtrend.

The minor trend is also down. This confirms the shift in momentum.

The short-term range is 33860 to 36030. Its retracement zone at 34945 to 34689 is the first downside target area.

The main range is 33300 to 36330. Its retracement zone at 34815 to 34457 is the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close on Tuesday is likely to be determined by trader reaction to 35543.

Bearish Scenario

A sustained move under 35543 will indicate the presence of sellers. Taking out the intraday low at 35333 will indicate the selling pressure is getting stronger. This could trigger an acceleration into the short-term 50% level at 34945.

If 34945 fails as support then look for the selling to possibly extend into the main 50% level at 34815 and the short-term Fibonacci level at 34689.

If 34689 fails as support then look for the selling to possibly extend into the main Fibonacci level at 34457.

Bullish Scenario

A sustained move over 35543 will signal the presence of buyers. This will also turn the market higher for the day. This could trigger a further rally into 35681.

Overcoming 35681 will indicate the buying is getting stronger. This could extend the rally into the 36030 main top.