E-mini Dow Struggling with 34932 – 35380 Retracement Zone

March E-mini Dow Jones Industrial Average futures are edging higher late in the session on Friday after recovering from an early setback. The rally is being driven by continued strength in earnings reports and a tech-led recovery following yesterday’s steep plunge.

Early Friday, the blue chip average was pressured by worries over higher interest rates after the 10-year Treasury yield jumped above 1.9%, following a government report that showed the U.S. economy added 467,000 new jobs in January.

At 19:03 GMT, March E-mini Dow Jones Industrial Average futures are trading 35041, up 70% or +0.20%. This is up from an intraday low of 34668.

Ahead of the U.S. Non-Farm Payrolls report, economists polled by Dow Jones had expected a minor gain of 150,000, and some economists predicted a large decrease. Economists had cautioned before the report it could be noisy because of an omicron wave hitting while the survey was taking place.

Daily Swing Chart Technical Analysis

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

A trade through 35590 will change the main trend to down. A move through 33031 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. 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.

The first minor range is 35590 to 34668. Its 50% level or pivot is 35129.

The second minor range is 33031 to 35590. Its retracement zone at 34311 to 34009 is the nearest support area.

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

Short-Term Outlook

The direction of the March E-mini Dow into the close will be determined by trader reaction to 35129. The short-term direction will be determined by trader reaction to 34932 to 35380.

Bullish Scenario

A sustained move over 35129 will indicate the presence of buyers. Taking out 35380 will indicate the buying is getting stronger.

A trade through 35590 will change the main trend to up. This could trigger an acceleration to the upside with 36390 the next likely target.

Bearish Scenario

A sustained move under 35129 will signal the presence of sellers. Taking out 34932 will indicate the selling is getting stronger.

A trade through the intraday low at 34668 could trigger a break into the retracement zone at 34311 to 34009.