E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – Taking Out 25817 Could Trigger Steep Break into 25607 – 25570

The blue chip stock market average is trading lower early Wednesday as investors continue to express caution over the possibility of an escalation of the global trade disputes. Investors are also shedding risky positions in reaction to weakness in emerging markets.

At 0643 GMT, September E-mini Dow Jones Industrial Average futures are trading 25909, down 76 or -0.29%.

E-mini Dow Jones Industrial Average
Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 26185 will signal a resumption of the uptrend. This move will also make 25817 a new main bottom. The main trend will change to down on a trade through 25607.

The minor trend is down according to the minor swing chart. This is controlling the downside momentum. A trade through 25817 will indicate the selling is getting stronger. The minor trend changes to up on a trade through 26080.

The minor range is 26185 to 25817. Its 50% level or pivot at 26001 is controlling the short-term direction of the market.

The intermediate range is 25607 to 26185. Its retracement zone at 25896 to 25828 is support. This zone provided support on Tuesday when buyers came in at 25817 to stop the price slide.

The main range is 24955 to 26185. If the trend changes to down on a trade through 25607 then look for the selling to continue into the retracement zone at 25570 to 25425. Buyers could come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the short-term pivot at 26001.

A sustained move under 26001 will indicate the presence of sellers. This could lead to a test of the intermediate 50% level at 25896. Since the main trend is up, buyers could come in on a test of this level.

If it fails then look for the selling to extend into the Fibonacci level at 25828 and the low at 25817.

The daily chart indicates there is plenty of room to the downside under 25817. If this move creates enough downside momentum then don’t be surprised by a potential plunge into 25607 to 25570.

Overtaking and sustaining a rally over 26001 will signal the return of buyers. If this creates enough upside momentum then look for the rally to extend into 26080.

Taking out 26080 could trigger an acceleration into 26185 over the near-term.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.