E-mini Dow Trade Through 35590 Changes Main Trend to Up

March E-mini Dow Jones Industrial Average futures are up late Tuesday as investors digested another batch of corporate earnings and awaited key inflation data later this week.

Strength in the financial sector helped underpin the blue chip average, led by shares of American Express and JPMorgan which rose 3.28% and 1.91%, respectively.

Amgen is posting the largest gain at 7.79%. Chevron Corp is under pressure, dropping 1.52%.

At 10:38 GMT, March E-mini Dow Jones Industrial Average futures are trading 35338, up 369 or +1.06%.

The E-mini Dow is up despite another rise in Treasury yields and concerns over high inflation. Treasury yields hit fresh pandemic-era highs Monday and rose again Tuesday. The benchmark 10-year Treasury note most recently yielded 1.96%, a level not seen since November 2019.

On Thursday, the Labor Department will release January’s consumer price index data. The reading follows a stronger-than-expected January jobs report, which has led to speculation that the Federal Reserve could be more aggressive when it comes to hiking rates. The inflation data is expected to show that prices rose 0.4% in January, for a 7.2% gain from one year ago, which would be the highest in almost 40 years.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending lower. A trade through 35590 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 trade through 34668 will change the minor trend to down.

The short-term range is 36832 to 33031. The E-mini Dow is currently trading inside its retracement zone at 34932 to 35380. Inside this zone is a pivot at 35129.

The minor range is 33031 to 35590. If the minor trend changes to down then look for a break into its retracement zone at 34311 to 34009.

Short-Term Outlook

The short-term direction of the March E-mini Dow is likely to be determined by trader reaction to 35380 to 34932.

Look for an upside bias on a sustained move over 35380 with the main top at 35590 the next target. Taking out this price will change the main trend to up and could trigger an acceleration to the upside with 36390 the next major target.

The inability to overcome 35380 will signal the presence of sellers. This could lead to a quick pullback into 35129, followed by 34932.

A trade through 34932 will indicate the selling is getting stronger. Taking out the minor bottom at 34668 could trigger an acceleration to the downside with 34311 – 34009 the next key target.