September E-mini Dow Jones Industrial Average futures are trading higher at the mid-session on Thursday after data showed fewer Americans filed for unemployment benefits last week, while a decline in shares of health insurer Cigna dragged healthcare stocks lower.
The focus now shifts to the jobs report for July on Friday. Analysts seem to be in agreement that a disappointing number might raise questions about an economic recovery, but it could also lead the Federal Reserve to remain accommodative.
At 16:47 GMT, September E-mini Dow Jones Industrial Average futures are trading 34858, up 168 or +0.48%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since Monday’s closing price reversal top. A trade through 35082 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through 33623.
The minor trend is down. This is controlling the momentum. A trade through 34602 will indicate the selling pressure is getting stronger.
The minor range is 35082 to 34602. The E-mini Dow is currently straddling its pivot at 34842.
The short-term range is 33623 to 35082. If the selling pressure is strong enough to take out 34602 then look for the move to extend into its retracement zone at 34353 to 34180.
Daily Swing Chart Technical Forecast
The direction of the September E-mini Dow into the close is likely to be determined by trader reaction to 34842.
A sustained move over 34842 will indicate the presence of buyers. If this move is able to attract enough buying volume then look for a surge into 35082.
A sustained move under 34842 will signal the presence of sellers. If this move generates enough downside momentum then look for a retest of 34602. Taking out this level could trigger an acceleration into the short-term retracement zone at 34353 to 34180.