March E-mini Dow Jones Industrial Average futures are trading higher shortly after the mid-session on Tuesday, boosted by Nike following strong earnings, while beaten-down big technology stocks bounced back from an Omicron-driven rout in the previous session.
The rapidly spreading variant of the coronavirus has rattled stock markets around the world, triggering major sell-offs in the final month of the year due to worries about the strain’s impact on a global economic recovery.
At 18:56 GMT, March E-mini Dow Jones Industrial Average futures are trading 35350, up 537 or +1.54%.
In stock related news, Nike Inc rose 6.6%, boosting the Dow Jones Industrial Average. It beat quarterly estimates for profit and revenue, and sounded confident of a letup in supply chain problems in its next fiscal year.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 34547 will signal a resumption of the downtrend. A move through 36098 will change the main trend to up.
The minor range is also down. The new minor bottom is 34547.
The main range is 33300 to 36330. Its retracement zone at 34815 to 34457 is support. It is controlling the near-term direction of the E-mini Dow. It also stopped the selling at 34547 on Monday.
The short-term range is 33860 to 36098. The market is trading on the strong side of its retracement zone at 34979 to 34715, making it new support.
The minor range is 36098 to 34547. Its retracement zone at 35323 to 35506 is currently being tested.
The term direction of the March E-mini Dow Jones Industrial Average into the close on Tuesday is likely to be determined by trader reaction to 35323 – 35506.
Since the main trend is down, sellers are likely to come in on the first test of this area. They are going to try to form a potentially bearish secondary lower top. If successful, this could lead to a resumption of the downtrend.
Overtaking 35506, however, will signal the presence of aggressive counter-trend buyers. This could trigger an acceleration to the upside with the next major target 36098.