E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25337, Weakens Under 25164

September E-mini Dow Jones Industrial Average futures are trading steady to lower early Wednesday. Underpinning the market is a strong earnings report from Apple. Keeping a cap on prices is a report that the U.S. is getting ready to announce additional tariffs against China. Investors may also be reluctant to choose a side ahead of today’s U.S. Federal Reserve Monetary Policy statement at 1800 GMT.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the closing price reversal top at 25572 on July 27 and its subsequent confirmation on Monday.

A trade through 25572 will negate the closing price reversal top chart pattern and signal a resumption of the uptrend. A move through 25264 will indicate that the selling is getting stronger. This will put the Dow in a position to challenge the main bottom at 24912. A trade through this bottom will change the main trend to down.

Currently, the Dow is trading on the strong side of a long-term retracement zone at 25337 to 24925. Holing above the upper or Fibonacci level at 25337 will give the futures contract an upside bias.

The short-term range is 24912 to 25572. Its retracement zone at 25242 to 25164 is the first downside target. So far this week, this area is holding as support.

The main range is 23978 to 25572. If the trend changes to down on a move through 24912 then look for the selling to extend into 24775 to 24587.

Daily Swing Chart Technical Forecast

Based on the price action on Monday and Tuesday and today’s early trade, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the Fib level at 25337.

A sustained move over 25337 will indicate the presence of buyers. If this move can generate some upside momentum then look for the rally to extend into 25572. Overtaking this top could trigger an acceleration to the upside.

A sustained move under 25337 will signal the presence of sellers. The next break will be labored with early targets 25242 and 25164.

Look for an acceleration to the downside if 25164 fails as support. This could trigger a plunge into 24925 then 24912.