E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Main Trend Turns Down in Volatile Trade

March E-mini Dow Jones Industrial Average futures came under pressure again in Friday’s volatile session amid worries about tighter monetary policy and the ongoing pandemic, leading to a losing week for the Blue Chip Average.

Friday coincided with the expiration of stock options, index options, stock futures and index futures – a quarterly event known as “quadruple witching” that typically comes with heightened volatility.

The March E-mini Dow Jones Industrial Average futures contract settled at 35252, down 539 or -1.53%. The average slipped 1.7% for the week.

The biggest losers for the session were Goldman Sachs, Walmart and Home Depot. All lost more than 2.88%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Friday when buyers took out the previous main bottom at 35274. A move through 36098 will change the main trend to up.

The new minor range is 36098 to 35164. Its 50% level at 35631 is a potential upside target and resistance level.

The short-term range is 33860 to 36098. Its retracement zone at 34979 to 34715 is the next potential downside target.

The main range is 33300 to 36330. Its retracement zone at 34815 to 34457 is the primary downside target and major support area. It is controlling the longer-term direction of the E-mini Dow.

The overlap of these two retracement areas makes 34815 to 34715 the key price cluster to watch early next week.

Short-Term Outlook

The series of retracement levels from 34979 to 34457 is likely to lead to a labored break early next week. Combined with the possibility of light, pre-holiday volume, this could be the formula for a volatile two-sided trade.

Our early bias is to the downside because of the uncertainty surrounding the Omicron breakout, which is expected to accelerate over the weekend.