E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 29826 Sets the Tone

March E-mini Dow Jones Industrial Average futures are trading lower late in the session on Tuesday. The selling is being fueled by a combination of end-of-the-year profit-taking and position-squaring under thin-trading conditions.

The catalysts behind the move are worries over a new variant of COVID-19 and downbeat economic data that dampened enthusiasm over the passage of a long-awaited pandemic relief bill in Washington.

At 20:18 GMT, March E-mini Dow Jones Industrial Average futures are trading 29934, down 179 or -0.59%.

The Dow’s weak performance could be worse if not for solid gains by Apple. The company was an outlier amid a broad sell-off, gaining over 3% on news of the company’s plans to roll out an electric passenger vehicle by 2024.

On the economic front, consumer confidence unexpectedly dropped while sales of pre-owned U.S. homes posted their first decline in six months.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down on Monday when sellers took out 29624. The downtrend was reaffirmed when the next main bottom at 29350 failed to hold.

A trade through 29318 will signal a resumption of the downtrend and serve as proof that yesterday’s sell-off was fueled by more than just sell-stops. A move through 30333 will change the main trend to up.

The minor range is 30333 to 29318.00. Its 50% level at 29826 is propping up the Dow on Tuesday.

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 29826.

Bullish Scenario

A sustained move over 29826 will indicate the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into 30333.

Bearish Scenario

A sustained move under 29826 will signal the presence of sellers. This could trigger the start of a steep break into 29318 over the short-run.