E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 30113 Sets the Tone

March E-mini Dow Jones Industrial Average futures are trading higher early Monday, but well off its high. The blue chip average popped higher on the opening after Congress announced it had managed to strike a deal on coronavirus stimulus hours before a government shutdown deadline.

The E-mini Dow rallied shortly after the opening, but sellers came in quickly, driving prices to within striking distance of Friday’s close, suggesting the news may have already been priced into the market.

At 00:42 GMT, March E-mini Dow Jones Industrial Average futures are trading 30147, up 34 or +0.11%. This is down from a high of 30333.

Congress reached a deal Sunday on a $900 billion coronavirus relief package, a long-delayed effort to boost an American health-care system and economy buckling under the weight of the pandemic.

Congressional leaders announced the agreement on a coronavirus aid and full-year government spending bill after days of start-and-stop efforts to finish a deal. They have not yet released test of the more than $2 trillion legislation, which they hope to pass in the next day.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on the opening when buyers took out Friday’s high. The main trend will change to down on a move through 29624.

The minor trend is also up. A trade through 29927 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 29624 to 30333. Its 50% level at 29979 is the first downside target.

The second minor range is 29350 to 30333. Its 50% level at 29842 is the second potential support level.

Watch for a technical bounce on the first test of these levels. This is critical since they are the last potential support before the 29624 main bottom.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 30113.

Bullish Scenario

A sustained move over 30113 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the intraday high at 30333. This price is a potential trigger point for an acceleration to the upside if the volume is strong enough.

Bearish Scenario

A sustained move under 30113 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first pivot at 29979. If it fails then look for a further break into 29927 and 29842.

Another break through 29842 could lead to a test of 29751 and the main bottom at 29624.