E-mini Dow Testing Key Retracement Zone at 33461 – 32665

March E-mini Dow Jones Industrial Average futures are down sharply shortly after the mid-session on Tuesday with financial stocks getting hit the hardest for a second straight day as the Russia-Ukraine crisis deepened, while a surge in oil prices boosted shares of energy companies.

At 18:27 GMT, the March E-mini Dow is trading 33119, down 721 or -2.13%.

In the broad market, ten of the 11 major S&P sectors declined, with financials tumbling 3.8% and tracking its biggest daily percentage decline since June 2020.

Dow components JPMorgan Chase & Co and Goldman Sachs Group Inc are down 5.57% and 3.56%, respectively.

The energy sector, however, is outperforming the overall market as oil jumped back above $100 a barrel. Dow component Chevron Corp climbed 2.7% to hit a record high after the oil market also raised its share buyback program and forecast for operating cash-flow through 2026.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 32167 will reaffirm the downtrend. A move through 35060 will change the main trend to up.

The minor trend is also down. A trade through 34065 will change the minor trend to up. This will shift momentum to the upside.

The main range is 30089 to 36832. The E-mini Dow is currently trading inside its retracement zone at 33461 to 32665.

The minor range is 35752 to 32167. Its 50% level at 33960 is resistance. It essentially stopped the rally at 34065 earlier today.

The short-term range is 36832 to 32167. Its retracement zone at 34500 to 35050 is a potentially stronger resistance area.

Short-Term Outlook

The direction of the March E-mini Dow Jones Industrial Average into the close on Tuesday is likely to be determined by trader reaction to 33116.

Bearish Scenario

A sustained move under 33116 will indicate the presence of sellers. This could trigger a further decline into the main Fibonacci level at 32665.

The selling pressure could increase even more if 32665 fails as support with the main bottom at 32167 the next target, followed by the March 25, 2021 main bottom at 31641.

Bullish Scenario

A sustained move over 33116 will indicate that counter-trend buyers are coming into the market. This could trigger a labored rally with potential targets coming in at 33461, followed by 33960 and 34065.

Taking out the intraday high at 34065 will indicate the buying is getting stronger with the short-term retracement zone at 34500 to 35050 the next major target area.