E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 35506, Weak Under 35323

March E-mini Dow Jones Industrial Average futures rallied for a second straight session on Wednesday as investors looked past the Omicron threat. The rally was also driven by upbeat U.S. consumer confidence, Final GDP and existing home sales data.

At 21:15 GMT, March E-mini Dow Jones Industrial Average futures are trading 35652, up 271 or +0.77%.

The blue chip average attracted buyers early in the session as more evidence showed Omicron is potentially less severe than prior strains, specifically Delta.

Additionally, a report showed U.S. consumer confidence improved further in December, suggesting the economy would continue to expand in 2022. Another showed U.S. home sales increased for a third straight month in November. Finally, gross domestic product increased at a 2.3% annualized rate in the July-September quarter, revised up from the 2.1% rate estimated last month.

In stock news, Caterpillar Inc was the best performer, gaining 1.94%. This was followed by Microsoft Corp and Apple Inc, which gained 1.81% and 1.53%, respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 36098 will change the main trend to up. A move through 34547 will signal a resumption of the downtrend.

The minor range is 36098 to 34547. The market is currently trading on the strong side of its retracement zone at 35506 to 35323, making it support.

The short-term range is 33860 to 36098. Its retracement zone at 34979 to 34715 is additional support.

The main range is 33300 to 36330. Its retracement zone at 34815 to 34457 is the major support and value zone at 34815 to 34457. This zone stopped the selling on Monday at 34547.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average futures contract early Thursday will be determined by trader reaction to 35506 to 35323.

Look for a bullish tone to develop on a sustained move over 35506 with 36098 the next likely upside target.

The bearish tone could resume on a sustained move under 35323 with 34979 the next likely downside target.