E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Grinding to Record High in Early Trade

March E-mini Dow Jones Industrial Average futures are edging higher on Thursday as investors continued to monitor the events in Washington tied to a possible coronavirus-relief package. On Wednesday, congressional leaders closed in on a $900 stimulus package that would include direct payments to individuals.

At 12:38 GMT, March E-mini Dow Jones Industrial Average are trading 30214, up 140 or +0.47%.

The Fed is also playing a part in the rally after it pledged on Wednesday to keep buying bonds until the economic recovery was completed. Fed Chairman Jerome Powell also said the central bank would increase its bond purchases if the recovery slows down.

Powell also said he had no problems with stock market valuations.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend moved higher during the pre-market session as the Dow inched through the previous main top at 30240. A trade through 29624 will change the main trend to down.

The minor trend is also up. A move through 29751 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

Trader reaction to 30079 will determine the direction of the E-mini Dow on Thursday.

Bullish Scenario

A sustained move over 30079 will indicate the presence of buyers. This could produce the current upside grind that we have been experiencing for about two weeks, or it could trigger an acceleration to the upside since there is no true resistance. It all depends on the size of the buying volume.

Bearish Scenario

A sustained move under 30079 will signal the presence of sellers. This could trigger a move into the minor bottom at 29751, followed by the main bottom at 29624. A trade through this level will change the main trend to down.

A close under 30079 will produce a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

For a look at all of today’s economic events, check out our economic calendar.