E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 30113 Forms Reversal Top

March E-mini Dow Jones Industrial Average futures are inching higher late in the session on Monday after turning lower for the month earlier in the day. The catalyst behind the steep break was fears over a new strain of COVID-19 that has shut down much of Britain. This event offset good news from the United States about the passing of a $900 billion stimulus deal.

At 19:36 GMT, March E-mini Dow Jones Industrial Average futures are trading 30182, up 69 or +0.23%. This is up from an intraday low of 29318.

Earlier in the session, the CBOE Volatility Index, also known as Wall Street’s “fear gauge”, jumped 29.7 points to its highest level since early November.

In stock related news, Dow component and planemaker Boeing Co slipped 6.7% on a U.S. Senate report saying Boeing officials “inappropriately coached” test pilots during recertification efforts. Some of this loss may have been offset by a 1.3% to 2.9% rise in shares of Goldman Sachs and JPMorgan Chase & Co.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend turned down on a trade through 29624. This was reaffirmed when sellers took out 29350. A trade through 30333 will change the main trend to up.

The minor trend is also down. This shifted momentum to the downside.

The minor range is 30333 to 29318. Its 50% level or pivot at 29826 has been controlling the price action throughout the session.

The main range is 25872 to 30333. Its retracement zone at 28103 to 27576 is a value zone.

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 29826.00.

Bullish Scenario

A sustained move over 29826 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to go after the intraday high at 30333. A trade through this level will signal a change in trend.

Bearish Scenario

A sustained move under 29826 will signal the presence of sellers. The first target is the pivot at 29826. If this level fails as support then look for the selling to possibly extend into the intraday low at 29318.

Side Notes

Traders should also watch the price action around Friday’s close at 30113.

A close under this level will form a potentially bearish closing price reversal top on the daily chart. If confirmed, this could trigger the start of a 2 to 3 day correction with 28103 to 27576 the primary downside target.

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