March E-mini Dow Futures Set Up for Another Test of 35066 – 34649 Retracement Zone

March E-mini Dow Jones Industrial Average futures retreated for a third straight session on Monday. The rough start to the year for the blue chip average is a spike in U.S. interest rates with the benchmark 10-year Treasury yield hovering above 1.8% on Monday morning after ending the year near 1.51%.

At 17:41 GMT, March E-mini Dow Jones Industrial Average futures are trading 35636, down 471 or -1.30%.

Losers:  Nike Inc, down $4.97%, Boeing Co, down 3.27% and Visa Inc, down 3.27%.

Winners:  Merck & Co Inc, up 1.77%, Intel Corp, up 1.47% and Amgen Inc, up 0.69%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 36832 will change the main trend to up. A move through 34547 will reaffirm the downtrend.

The market is trading slightly below a pivot at 35690, making it potential resistance.

The new minor range is 36832 to 35521. Its 50% level at 36177 is additional resistance.

The first downside target is the 50% level at 35346. This is the first downside target. This is followed by the retracement zone at 35066 to 34649. Buyers could come in on the first test of this area since it represents value. If it fails then we could see an acceleration to the downside.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average into the close on Monday will be determined by trader reaction to 35690.

Bearish Scenario

A sustained move under 35690 will indicate the presence of sellers. This could trigger a sharp break into the next pivot at 35346. This is the last potential support before the 35066 to 34649 retracement zone and value area.

Bullish Scenario

A sustained move over 35690 will signal the presence of buyers. If this move can create enough intraday upside momentum then look for a potential surge into 36177. Since the main trend is down, sellers are likely to come in on a test of this level.