E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 25156 Will Set Tone Today

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening on Thursday. The selling pressure is being fueled by concerns over a weakening global economy. Earlier today, the European Commission (EU) cut it growth outlook for the Euro Zone. The Bank of England also cut its 2019 outlook.

At 18:08 GMT, March E-mini Dow Jones Industrial Average futures are trading 25057, down 270 or -1.07%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is starting to shift to the downside. On Wednesday, the Dow stopped a little short of forming a potentially bearish closing price reversal top. A trade under 24996 will turn the Dow lower for the week.

A trade through 25387 will reaffirm the uptrend. The market isn’t close to turning the main trend to down, but it is still inside the window of time for a closing price reversal top.

The minor trend is also up. A trade through 24924 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 24924 to 25387. Its 50% level or pivot is 25156.

The major retracement zone is 24890 to 24234. This zone is controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the minor pivot at 25156.

Bullish Scenario

A sustained move over 25156 will indicate the return of buyers. If this creates enough upside momentum then look for buyers to make a run at 25387. Taking out this level will signal a resumption of the uptrend. This would put the market back on course for an eventual test of the main top at 26110.

Bearish Scenario

A sustained move under 25156 will signal that the selling pressure is getting stronger. If this move creates enough downside momentum then watch for a potential acceleration into the minor bottom at 24924, followed closely by the major Fibonacci level at 24890.

The Fib level at 24890 is also a potential trigger point for an acceleration into the major 50% level at 24234.

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