E-mini Dow Ready to Challenge 36177 – 36331 Resistance

March E-mini Dow Jones Industrial Average futures are inching higher early Wednesday while trying to follow-through to the upside after a choppy trade, but higher close the previous session.

The blue chip average posted a two-sided trade as investors absorbed remarks from the Federal Reserve that interest rates are likely to rise this year, as expected.

In comments to U.S. lawmakers, Federal Reserve Chairman Jerome Powell said he expected the Fed would raise rates and end its asset purchases this year, but that the central bank had made no decision about the timing for tightening monetary policy.

At 14:29 GMT, March E-mini Dow Jones Industrial Average futures are trading 36151, up 23 or +0.06%. In the cash market on Tuesday, the Dow settled at 36252.02, up 183.15 or +0.51%.

The best performing stock in the Dow was Boeing Co, which closed up 3.206%. This was followed by Chevron Corp, which rose 2.286% and Salesforce.com, which gained 2.269%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 35521 will signal a resumption of the downtrend. A move through 36832 will take out a bearish closing price reversal top and signal the resumption of the uptrend.

The minor range is 36832 to 35521. The E-mini Dow is currently testing the lower end of its retracement zone at 36177 to 36331. Trader reaction to this zone will determine the short-term direction of the average.

The short-term range is 34547 to 36832. Its 50% level at 35690 is support. This level underpinned the market on Tuesday.

The intermediate range is 33860 to 36832. Its 50% level at 35346 is another potential support level. Monday’s selling stopped just above this level.

The main retracement zone support is 35066 to 36649. This zone is controlling the near-term direction of the market.

Short-Term Outlook

The direction of the March E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to 36177 and 36331.

Bearish Scenario

A sustained move under 36177 will indicate the presence of sellers. With the main trend down, they are going to try to form a potentially bearish secondary lower top. This could trigger an acceleration to the downside with 35690 the next downside target, followed by 35521 and 35346. These are the last potential support levels before the major retracement zone at 35066 to 34649.

Bullish Scenario

The first sign of strength will be overcoming 36177. A sustained move over 36331, however, could trigger the start of an acceleration to the upside with 36832 the next major upside target.