E-Mini Dow Sellers Targeting 34311 – 34009

March E-mini Dow Jones Industrial Average futures are trading lower late Thursday as a plunge in the NASDAQ Composite, led by a massive sell-off by Facebook-owner Meta Platforms, dragged down the blue chip average.

The more-than-25% drop in shares of Meta also weighed on technology-driven Dow components Microsoft and Intel Corp, which fell 4.38% and 1.42%, respectively.

At 19:22 GMT, March E-mini Dow Jones Industrial Average futures are trading 35232, down 260 or -0.73%.

Strong earnings from Dow constituents Microsoft and Apple earlier in the week drove investors back into tech, reminding them that fundamentals are still strong, but Meta Platforms’ weak guidance has caused some to reverse course.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher.

A trade through 36390 will change the main trend to up. A move through 33031 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A new minor top has formed at 35590. A trade through 33532 will change the minor trend to down.

The short-term range is 36832 to 33031. The E-mini Dow is currently testing its retracement zone at 34932 to 35380. This zone is controlling the near-term direction of the market.

The minor range is 33031 to 35590. Its retracement zone at 34311 to 34009 is the primary downside target.

The major support is a retracement zone at 33461 to 32665. This area stopped the selling at 33031 on January 24.

Short-Term Outlook

The short-term direction of the March E-mini Dow Jones Industrial Average will be determined by trader reaction to 34932 to 35380.

Since the main trend is down, sellers are trying to stop the rally and drive the market through 34932 in an effort to form a potentially bearish secondary lower top. If successful, then look for the selling to possibly extend into the minor pivot area at 34311 to 34009.

On the upside, a sustained move over 35380 will signal the presence of buyers. If this move creates enough upside momentum then look for a potential acceleration to the upside with the main top at 36390 the next major target.