James Hyerczyk
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E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are trading higher late in the session on Monday as bond markets calmed after a month-long sell-off, while encouraging updates on COVID-19 vaccines and fiscal stimulus bolstered bets over a swift economic recovery. The Dow was on pace for its best daily gain in nearly four months.

At 21:03 GMT, March E-mini Dow Jones Industrial Average futures are trading 31503, up 591 or +1.91%.

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In stock related news, Dow component Johnson & Johnson rose 1.8% as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend. Tech components Apple and Microsoft Corp rebounded between 1% and 3.9% on Monday.

Finally, President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday. The bill now moves to the Senate.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 30866 will signal a resumption of the downtrend. The main trend will change to up when buyers take out the closing price reversal top at 32033.

The minor range is 32033 to 30866. The market is currently testing its retracement zone at 31450 to 31587. Trader reaction to this area will determine the next major move by the Dow.

On the downside, the first support is a 50% level at 30793, followed by a retracement zone at 30676 to 30355.


Short-Term Outlook

The next major move by the E-mini Dow futures contract will be determined by trader reaction to the minor 50% level at 31450 and the Fibonacci level at 31587.

Trend trading sellers are going to try to stop the buying inside 31450 to 31587. They are going to try to produce a potentially bearish secondary lower top which could lead to further downside pressure.

Aggressive counter-trend buyers are going to try to take out 31587 in an effort to drive the Dow into 32033 and perhaps another record high.’

For a look at all of today’s economic events, check out our economic calendar.

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