E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 29932, Weak Under 29795

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening as traders weighed the apparent progress in the U.S. fiscal stimulus talks and disappointing economic data.

According to CNBC, Politico reported Congress was on the brink of a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package would exclude a liability shield for businesses and state and local aid.

At 15:23 GMT, March E-mini Dow Jones Industrial Average futures are trading 30121, down 9 or -0.03%.

Data showed U.S. retail sales fell 1.1% in November, declining for a second straight month, as new coronavirus infections and decreasing household income weighed on spending.

Finally, the Fed is expected to keep lending rates at near-zero and signal their staying there for the foreseeable future at the conclusion of their meeting later in the day. Investors are anticipating an update on the Fed’s bond-buying program.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 30240 will signal a resumption of the uptrend. A move through 29624 will change the main trend to down.

The minor trend is also up. A trade through 29751 changes the minor trend to down.

A pair of 50% levels at 29932 and 29795 are providing support.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average futures contract will be determined by trader reaction to 29932 and 29795.

Bullish Scenario

A sustained move over 29932 will indicate the presence of buyers. If this is able to generate enough upside momentum then we could see a test of 30240. If the buying volume is strong enough, this level could be the trigger point for an acceleration to the upside.

Bearish Scenario

A move under 29932 will be the first sign of weakness. A sustained move under 29795 will signal the presence of even stronger sellers. The downside pressure should increase when the minor bottom at 29751 and the main bottom at 29624 are taken out. This will not only change the trend to down, but it should trigger an acceleration to the downside.