March E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The market is being driven higher by increased demand for risky assets, fueled by a recovery in U.S. Treasury yields. The catalyst behind the strength is a pledge by President Trump to provide fiscal stimulus to offset the effects of the coronavirus on the U.S. economy.
At 13:12 GMT, March E-mini Dow Jones Industrial Average futures are trading 24614, up 737 or +3.12%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 23424 will signal a resumption of the downtrend.
The main trend will change to up on a trade through 27075.
A close over 23877 will produce a potentially bullish closing price reversal bottom. This won’t change the main trend to up, but it could lead to a 2 to 3 day counter-trend rally.
The long-term range is 21452 to 29543. Its retracement zone at 24543 to 25490 is currently being tested. This zone is controlling the longer-term direction of the Dow.
The short-term range is 27075 to 23424. Its retracement zone at 24250 to 25680 is the first potential upside target. This zone surrounds the main 50% level at 25490, creating a potential resistance cluster.
The main range is 29543 to 23424. Its retracement zone at 26484 to 27206 is another potential resistance zone target.
Daily Technical Forecast
Based on the early price action and the current price at 24614, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the major Fibonacci level at 24543.
A sustained move over 24543 will indicate the presence of buyers. This could lead to a surge into the downtrending Gann angle at 25191.
Overtaking 25191 will indicate the buying is getting stronger, but this could lead to a labored rally with potential targets lined up at 25250, 25490 and 25680.
The market will start to open up to the upside over 25680. This could lead to a test of the main retracement zone at 26484 to 27206.
A sustained move under 24543 will signal the presence of sellers. The first target is a minor pivot at 24212. This is followed by yesterday’s low at 23424. This is also the trigger point for an acceleration into January 4, 2019 main bottom at 22563.