E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Upside Momentum Over 31273

March E-mini Dow Jones Industrial Average futures are trading slightly better shortly ahead of the cash market opening on Monday after recovering from an earlier setback that was fueled by another rise in U.S. Treasury yields.

Expectations for a much higher opening were squashed early in the pre-market session as investors showed little interest in reacting to the potentially bullish Senate passage of the U.S. coronavirus relief package over the weekend, while maintaining their focus on the direction of U.S. Treasury yields.

At 13:41 GMT, March E-mini Dow Jones Industrial Average futures are trading 31534, up 69 or 0.22%. This is up from an intraday low of 31287.

With Dow futures up and NASDAQ futures down, investors were still buying value and selling growth stocks, while betting on a strong reopening of the economy. Look for the Dow to soar if the NASDAQ turns positive for the day or if Treasury yields soundly drop from the current highs.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum has shifted to the upside. A trade through 30512 will reaffirm the downtrend, while a move through 32033 will change the main trend to up.

The minor trend is up. It changed to up earlier today when buyers took out the minor top at 31637. This move shifted momentum to the upside.

The minor range is 32033 to 30512. The Dow is currently trading on the strong side of its pivot at 31273. Holding above this area could give the market an upside bias throughout the session.

On the downside, the support is a series of levels at 30793, 30676, 30497 and 30355. This area stopped the selling last week.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the March E-mini Dow Jones Industrial Average futures contract into the close on Monday will be determined by trader reaction to the minor pivot at 31273.

Bullish Scenario

A sustained move over 31273 will indicate the presence of buyers. A sustained move over the minor top at 31637 will indicate the buying is getting stronger. This could trigger an acceleration into the main top at 32033.

Bearish Scenario

A sustained move under 31273 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target a short-term pivot at 30793.

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