E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 29917, Weak Under 29780

March E-mini Dow Jones Industrial Average futures are inching higher late in the session after clawing back earlier losses, as doubts over fresh economic stimulus dented confidence, even as regulators inched toward emergency us approval of a COVID-19 vaccine.

Additionally, alternating headlines on progress toward a stimulus deal have kept investors on edge, after optimism over a working vaccine pushed Wall Street’s main indexes to record highs earlier in the week.

At 20:50 GMT, March E-mini Dow Jones Industrial Average futures are trading 29924, up 12 or +0.04%.

A 13% jump in the shares of Walt Disney Co helped limit losses in the Dow, as the media company announced a heavy slate of new shows for its streaming services and said it expects as many as 350 million global subscribers by the end of fiscal 2024.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on December 9.

A trade through 30209 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 29350.

The minor trend is down. It changed to down when sellers took out the last minor bottom at 29761. This move shifted momentum to the downside.

The first minor range is 29350 to 30209. Its 50% level at 29780 is potential support.

The second minor range is 30209 to 29624. Its 50% level at 29917 is potential resistance.

The short-term range is 25872 to 30209. If the main trend changes to down then its retracement zone at 28041 to 27529 will become the primary downside target. This is also a value zone, which could bring in new buyers.

Short-Term Outlook

The two-sided price action on Friday suggests the short-term direction of the March E-mini Dow Jones Industrial Average will be determined by trader reaction to a pair of 50% levels at 29780 and 29917.

Bearish Scenario

A sustained move under 29780 will indicate the presence of sellers. Taking out 29624 will indicate the selling is getting stronger. This could lead to a test of the minor bottom at 29500 and the main bottom at 29350.

The main trend will change to down on a move through 29350. This could also trigger the start of a steep break.

Bullish Scenario

A sustained move over 29917 will signal the presence of buyers. If this creates enough upside momentum then look for the move to possibly extend into the main top at 30209. Taking this out could trigger an acceleration to the upside, but it all depends on the buying volume. We’ve seen nothing but weak buying volume on each new high over the past two weeks.