E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 23558, Weakens Under 23156

March E-mini Dow Jones Industrial Average futures posted a solid gain on Friday after U.S. Federal Reserve Chairman Jerome Powell delivered exactly what investors wanted. Powell softened his tone about future rate hikes and even said the Fed would be patient when making decisions in 2019. The move along with a stronger-than-expected jobs report also alleviated fears of a slowing economy.

On Friday, March E-mini Dow Jones Industrial Average futures settled at 23384, up 725 or +3.10%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up when buyers took out the last swing top at 23417 on Friday. The new main bottom is 22563. The trend will change back to down on a trade through this level.

The first leg up from 21452 was 1965 points in 4 trading sessions. If this pattern continues then we could see a rally to 24528 by Thursday, January 10.

The nearest support is the 50% level at 22151.

The short-term range is 24860 to 21452. The market closed inside its retracement zone at 23156 to 23558. Trader reaction to this zone should determine the next near-term move.

The main range is 26110 to 21452. Its retracement zone at 23781 to 24331 is the next upside target. Sellers could come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the change in trend to up and the close at 23384, the direction of the March E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 23558.

Bullish Scenario

Taking out 23558 and sustaining the move will indicate the presence of buyers. This should create the momentum needed to challenge the main 50% level at 23781. This is a potential trigger point for an acceleration to the upside with the next targets 24331 and 24528.

Bearish Scenario

A sustained move under 23558 will signal the return of sellers. This could trigger a break back to the 50% level at 23156. Crossing to the weak side of this level will indicate the selling is getting stronger.