March E-mini Dow Jones Industrial Average futures are trading slightly better shortly after the cash market opening. Volume is extremely low as investors await the release of the Fed Minutes at 1900 GMT.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The minor trend is up, however. The main trend will turn up on a trade through 26684. The downtrend will resume on a move through 23088.
The main range is 26684 to 23088. Its retracement zone is 24886 to 25310. The Dow is currently testing this zone. Trader reaction to the zone will determine the near-term tone of the market.
The short-term range is 23088 to 25424. Its retracement zone at 24256 to 23980 is the primary downside target. Aggressive counter-trend buyers are going to try to create a secondary higher bottom on a test of this zone. Trend and momentum investors are going to try to drive the market through this zone.
Daily Technical Forecast
Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to the main 50% level at 24886.
A sustained move over 24886 will indicate the presence of buyers. This could create the upside momentum needed to challenge the Fibonacci level at 25310.
Overtaking 25424 will reaffirm the minor uptrend. This could trigger a further move into the potential resistance cluster at 25648 to 25660.
The downtrending Gann angle at 25660 is also the trigger point for an acceleration to the upside with potential Gann angle targets coming in at 26172 and 26428. The latter is the last potential resistance angle before the 26684 main top.
A sustained move under 24886 will signal the presence of sellers. This could trigger a move into a downtrending Gann angle at 24636. Crossing to the weak side of this angle will indicate the selling is getting stronger.
The major downside target is 24256 to 23980. Look for a technical bounce on the first test of this zone, but if it fails then look for the selling to extend into uptrending Gann angles at 23728 and 23408. The latter is the last potential support angle before the 23088 main bottom.
Basically, we’re looking for an upside bias to develop on a sustained move over 25310 and for a downside bias to develop on a sustained move under 24886.
This article was originally posted on FX Empire
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