March E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening but trading off its session high. The market is still hovering around the record high at 29475.
While investors continue to shrug off potential economic damage from the spread of the coronavirus, they are likely to pay attention to commentary from Federal Reserve Chairman Jerome Powell, who is scheduled to testify before members of Congress at about 15:00 GMT.
In prepared statements, he said the central bank is “closely monitoring” the coronavirus for a potential hit to China and the global economy. However, he is also likely to say the U.S. economy is good, but low inflation will force the Fed to keep a rate hike on hold.
At 15:07 GMT, March E-mini Dow Jones Industrial Average futures are trading 29340, up 95 or +0.33%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 29475 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 28105.
The minor trend is also up. A trade through 28850 will change the minor trend to down. This will shift momentum to the downside.
The minor range is 29475 to 28850. Its 50% level or pivot at 29163 is the first downside target.
The short-term range is 28105 to 29475. Its retracement zone at 28790 to 28628 is a key value zone.
Daily Technical Forecast
Based on the early price action and the current price at 29340, 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 a pair of downtrending Gann angles at 29379 and 29283.
A sustained move over 29379 will indicate the presence of buyers. The next upside target is a downtrending Gann angle at 29427. This is the last potential resistance angle before the 29475 main top. Taking out this level could trigger an acceleration to the upside.
A sustained move under 29379 will signal the buying is weak. A trade through the next downtrending Gann angle at 29283 will indicate the selling is getting stronger. This could trigger a break into the pivot at 29163.
Look for buyers on the first test of 29163. If it fails then look for the selling to possibly extend into another pair of Gann angles at 29091 and 29001.