September E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening. The upside momentum has put the Dow in a position to challenge the last main top at 25209.
The main trend is down according to the daily swing chart. However, momentum is trending high. A trade through 25209 will negate last Thursday’s closing price reversal top and signal a change in trend to up. The move will also make 24912 a new main bottom.
The Dow is currently trading inside a major long-term retracement zone at 24925 to 25337. This zone is controlling the longer-term direction. It’s safe to say that the Dow will strengthen on a sustained move over 25337 and weaken on a sustained move under 24925.
The minor range is 24611 to 25209. Holding inside this range makes its retracement zone at 24910 to 24839 another potential downside target.
The combination of the long-term 50% level at 24925 and the short-term 50% level at 24910 creates a solid support cluster. Look for the upside bias to continue as long as this area holds as support.
Taking out 25209 will indicate the buying is getting stronger. This could trigger a spike into the major Fibonacci level at 25337. This is followed by another main top at 25418.