E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Tight Range, Low Volume Suggests Investor Indecision

March E-mini Dow Jones Industrial Average futures are trading slightly better shortly after the cash market opening, but the light volume suggests traders may already be lightening up on their trading activity ahead of next week’s Christmas holiday.

On Tuesday, the Dow posted an inside move while the S&P 500 and NASDAQ Composite Indexes hit record highs. This slight divergence suggests the buying may be weakening or the selling may be getting stronger.

At 14:55 GMT, March E-mini Dow Jones Industrial Average futures are trading 28310, up 26 or +0.10%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 28350 will signal a resumption of the uptrend. The main trend will change to down on a move through 27297.

The minor trend is also up. A trade through 27715 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 27715 to 28350. Its retracement zone at 28033 to 27958 is the first downside target.

The main range is 27297 to 28350. Its retracement zone at 27824 to 27699 is also important support.

Daily Technical Forecast

Trader reaction to Tuesday’s close at 28284 is likely to determine the direction of the March E-mini Dow Jones Industrial Average on Wednesday.

Bullish Scenario

A sustained move over 28284 will indicate the presence of buyers. The first target is the all-time high at 28350. This is followed closely by a steep uptrending Gann angle at 28483.

Crossing to the strong side of the angle at 28483 will put the Dow in an extremely bullish position.

Bearish Scenario

A sustained move under 28284 will signal the presence of sellers. The first target is 28154. This is followed by an uptrending Gann angle at 28099. Look for a technical bounce on the first test of this angle.

If 28099 fails as support then look for the selling to possibly extend into the short-term 50% level at 28033. This is followed by an uptrending Gann angle at 28001 and a short-term Fibonacci level at 27958.