E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 29795 Sets the Tone

March E-mini Dow Jones Industrial Average futures are moving higher on Tuesday shortly before the mid-session as Congress continued negotiations on another economic relief package and COVID-19 vaccines begin to roll out across the country.

Apple Inc was the top boost to the Dow, rising 4% to a more than three-month high after a report said it plans to increase iPhone production by 30% in the first half of 2021.

At 16:07 GMT, March E-mini Dow Jones Industrial Average futures are trading 29948, up 35 or +0.13%.

Talks in Congress were underway to agree on a bill to avert a government shutdown, with Democrat and Republican leaders appearing more upbeat about including a fresh round of coronavirus aid, the first new relief measure since April.

In other news, the Fed is expected to signal easy monetary policy for the foreseeable future in its two-day meeting starting Tuesday. The recent coronavirus vaccine roll-out is also expected to improve the central bank’s 2021 outlook.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum may be getting ready to shift to the downside following yesterday’s closing price reversal top.

A trade through 30240 will negate the closing price reversal top and signal a resumption of the uptrend. A sustained move under yesterday’s low at 29763 will confirm the reversal and signal a shift in momentum. The main trend will change to down on a trade through 29624.

The minor range is 29350 to 30240. The Dow is currently straddling its 50% level at 29795.

The main range is 25872 to 30240. If the main trend changes to down then its retracement zone at 28056 to 27541 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to the pivot at 29795.

Bullish Scenario

A sustained move over 29795 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into yesterday’s record high at 30240.

Bearish Scenario

A sustained move under 29795 will signal the presence of sellers. This could trigger a break into 29624.

The trend changes to down on a trade through 29624. This could trigger a break into the next main bottom at 29350. A move through this level will reaffirm the downtrend. This could trigger an acceleration to the downside.