Trading Above 35380 Puts E-mini Dow in Bullish Position

March E-mini Dow Jones Industrial Average futures are edging higher in the pre-market session on Thursday ahead of key U.S. inflation data expected later in the day. Investors are trying to build upon yesterday’s rally that changed the trend to up, and tested its highest level since January 18.

At 08:33 GMT, March E-mini Dow Jones Industrial Average futures are trading 35684, up 43 or +0.12%.

The blue chip average is being lifted by shares of Disney which jumped more than 6% in after-hours trading after the company reported a quarterly earnings beat and a doubling of revenue from its parks, experiences and consumer products division.

Thursday’s U.S. Consumer Price Index (CPI) report, due to be released at 13:30 GMT, is expected to show headline inflation for January at the highest pace since 1982. Core inflation, which excludes food and energy costs and is the Federal Reserve’s preferred measure of inflation, is expected to rise by 0.4%, or 7.2% year-over-year.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Wednesday when buyers took out the previous main top at 35590. A trade through 34668 will change the main trend to down.

The short-term range is 36832 to 33031. The E-mini Dow is currently trading on the strong side of its retracement zone at 35380 to 34932, making this area support.

Daily Swing Chart Technical Forecast

The direction of the March E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to 35641.

Bullish Scenario

A sustained move over 35641 will indicate the presence of buyers. Taking out the intraday high at 35741 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a potential short-term acceleration into the nearest main top at 36390.

Bearish Scenario

A sustained move under 35641 will signal the presence of sellers. The first downside target is 35380. If this fails then look for the selling to possibly extend into 34932 then 34668.00.

Taking out 34668 will change the main trend to down. This could trigger a further break into 34386.