E-mini Dow Jones Industrial Average (YM) Futures Analysis – Daily Chart Shows No Actual Resistance Until 26672

The Dow 30 is trading higher early Friday. The market is inching through its late August top at 26185 without much momentum. Increased demand for higher risk assets and yesterday’s weaker-than-expected consumer inflation data is helping to generate the upside bias. Investors are saying that the Fed may be nearing neutrality and may not have to increase rates as aggressively as previously thought.

At 0915 GMT, September E-mini Dow Jones Industrial Average futures are trading 26220, up 62 or +0.24%.

The tentativeness behind the early trade is likely being fueled by lingering trade worries especially after President Trump said on Thursday that that Washington was “under no pressure to make a deal with China, they are under pressure to make a deal with us.” He added that the U.S. “will soon be taking in Billions in Tariffs & making products at home.”

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. This was reaffirmed on Thursday when buyers took out the August 29 main top at 26185. A trade through 25764 will negate a closing price reversal bottom and signal a change in trend.

The main range is moving upward, which means the main retracement zone and support area is also moving upward. The main bottom is 24955 to today’s intraday high at 26231. Its 50% to 61.8% retracement zone at 25593 to 25442 is the support.

The short-term range is 25764 to 26231. Its 50% level or pivot is 25998. This will move up if the market moves to a new high.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the previous top at 26185.

A sustained move over 26185 will indicate the presence of buyers. The daily chart indicates there is plenty of room to the upside with the January 26 main top at 26672 the next major upside target. However, it is going to take rising volume and strong upside momentum to sustain the move.

A sustained move under 26185 will signal the presence of sellers. This move will indicate the selling is greater than the buying at current price levels. A move under 26160 will put the Dow in a position to form a potentially bearish closing price reversal top.

If there is a break under 26185 then the first target will be the short-term 50% level at 25998. If this level fails to attract buyers then look for the selling to possibly extend into 25764.