Yahoo Finance E-Mini Dow Rebounds Overnight after China Cuts Key Rates
March E-mini Dow Jones Industrial Average futures are edging higher Thursday after recovering from earlier weakness as China cut its key lending rates. The news fueled a rally in the Asian stock markets with Hong Kong’s Hang Seng index jumping 3% as property and tech stocks rebounded. This move encouraged U.S. short-sellers to cover their positions.
At 05:07 GMT, March E-mini Dow Jones Industrial Average futures are trading 35091, up 181 or +0.52%.
On Wednesday, the Dow fell for a fourth day in a row as investors continued to react to a spike in 10-year Treasury note yields to a two-year high of 1.90%. It started the year at about 1.5%.
In stock related news, Boeing Co lost 3.52%. Caterpillar Inc was off by 3.10% and American Express Co fell 2.88%.
In economic data, investors are expecting numbers on jobless claims and existing home sales Thursday.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through the intraday low at 3858 will signal a resumption of the downtrend. A move through 36390 will change the main trend to up.
The main range is 33000 to 36832. The E-mini Dow is currently testing its retracement zone at 35046 to 34625. This zone is controlling the near-term direction of the market.
The minor range is 36390 to 34858. Its 50% level at 35624 is the first upside target and potential resistance.
The short-term range is 36832 to 34858. Its retracement zone at 35845 to 36078. Is the last potential resistance before the 36390 main top.
Daily Swing Chart Technical Forecast
The direction of the March E-mini Dow Jones Industrial Average futures contract on Thursday is likely to be determined by trader reaction to 34910.
Bullish Scenario
A sustained move over 34910 will indicate the presence of buyers. The first upside target is 35046.
If taking out 35046 generates enough upside momentum then look for the rally to possibly extend into the 35624 pivot over the short-run.
Bearish Scenario
A sustained move under 34910 will signal the presence of sellers. Taking out 34858 will indicate the selling is getting stronger. This could trigger a further break into 34625, followed by 34547.
The main bottom at 34547 is a potential trigger point for an acceleration to the downside with 33860 the next likely downside target price.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
