E-mini Dow Runs into Retracement Zone Resistance at 36331

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March E-mini Dow Jones Industrial Average futures are trading lower late in the session on Thursday. Technology components of the blue chip average were the biggest drag. Microsoft Corp was down 4.23%. Salesfore.com Inc lost 3.87% and Apple Inc declined by 1.90%.

The catalysts behind the selling pressure were higher Treasury yields, nervousness ahead of the start of earnings season, and a vaccine mandate defeat in the Supreme Court by the Biden administration.

At 21:37 GMT, March E-mini Dow Jones Industrial Average futures are trading 35988, down 172 or -0.48%.

A rise in Treasury yields is contributing to the late session sell-off. Yields bounced back from early session weakness after Fed Governor Lael Brainard said the U.S. central bank would be in a position to start what could be several interest rate hikes this year “as soon as” it completes winding down its bond purchases, expected to happen in March.

Prices fell further after the Supreme Court blocked President Biden’s Covid vaccine mandate for large private businesses. However, the conservative majority court allowed similar requirements to stand for medical facilities that take Medicare or Medicaid payments.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 36832 will change the main trend to up. A move through 35521 will signal a resumption of the downtrend.

The short-term range is 36832 to 35521. Its retracement zone at 36177 to 36331 helped stop the rally at 36390 on Thursday. This indicates a potentially bearish secondary lower top may be forming.

The minor range is 35521 to 36390. The E-mini Dow is currently testing its pivot at 35956.

The next two potential support levels come in at 35690 and 35346.

The main support controlling the near-term direction of the E-mini Dow is 35066 to 34649.

Short-Term Outlook

Trader reaction to 35956 should determine the direction of the March E-mini Dow early Friday.

Bearish Scenario

A sustained move under 35956 will indicate the presence of sellers. This could trigger a break into 35690, followed by the main bottom at 35521.

Bullish Scenario

A sustained move over 35956 will signal the presence of buyers. This could lead to a retest of 36177 to 36331, followed by 36390.

Taking out 36390 could trigger an acceleration to the upside.