E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 34026, Weak Under 33812

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening on Friday. In the overnight session, the blue chip average was supported by shares of Caterpillar, which were trading 1% higher on optimism around a U.S. infrastructure deal.

Futures extended gains after a key inflation indicator that the Federal Reserve uses to set policy rose 3.4% as expected in May, the fastest increase since the early 1990s, the Commerce Department reported Friday.

At 13:15 GMT, September E-mini Dow Jones Industrial Average futures are trading 34248, up 166 or +0.49%.

Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on June 21.

A trade through 34711 will change the main trend to up. A move through 32902 will negate the closing price bottom and signal a resumption of the downtrend.

The short-term range is 34721 to 32902. The Dow is currently trading on the strong side of its retracement zone at 34026 to 33812, making this area new support.

The main range is 31842 to 34883. Its retracement zone at 33363 to 33004 is controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the 34026.

Bullish Scenario

A sustained move over 34026 will indicate the presence of buyers. If this move continues to generate enough upside momentum then look for the rally to possibly extend into 34711 – 34721 over the near-term.

Bearish Scenario

A sustained move under 34026 will signal the presence of sellers. The first downside target is the 50% level at 33812. Buyers could come in on a test of this level, but if it fails then look for a possible acceleration to the downside.

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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.