E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 26575 Potential Trigger Point for Steep Break

December E-mini Dow Jones Industrial Average futures are edging higher on Wednesday shortly after the cash market opening. During the premarket session, the Dow posted a two-sided trade as investors continued to digest the impact of the start of a formal impeachment inquiry on President Trump.

Some investors are saying the impeachment inquiry is not likely to have a major impact on stock prices since a full impeachment is unlikely to pass the Republican-led Senate. However, they do acknowledge the proceedings will be a distraction for President Trump.

Investors will continue to monitor U.S.-China trade relations since they are likely have the biggest impact on stock prices. On Tuesday, Trump sent prices lower when he reiterated he would not accept a “bad deal” with China. Formal high-level talks between the U.S. and China begin in about two weeks.

At 13:54 GMT, December E-mini Dow Jones Industrial Average futures are trading 26822, up 4 or +0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A move through 26686 will reaffirm the downtrend. A trade through 27262 will change the main trend to up.

The minor trend is also down. A move through 27112 will change the minor trend to up and shift momentum to the upside.

The minor range is 27312 to 26686. Its 50% level or pivot at 26999 is potential resistance.

The short-term range is 25244 to 27312. Its retracement zone at 26278 to 26034 is potential support. This is a value zone so a test of this area could bring in counter-trend buyers.

Daily Technical Forecast

Since the main trend is down, the key area to watch today is a pair of Gann angles at 26588 and 26575.

Bearish Scenario

A sustained move under 26575 will indicate the selling is getting stronger. If this move creates enough downside momentum then look for a potential break into the short-term 50% level at 26278. This is followed by a Fibonacci level at 26034 and an uptrending Gann angle at 25916.

Bullish Scenario

Holding above 26588 will signal the presence of buyers. The first upside targets are a long-term downtrending Gann angle at 26975 and the short-term pivot at 26999.

Overtaking 26999 will indicate the presence of buyers. This could drive the Dow into another downtrending Gann angle at 27175. This is the last potential resistance angle before the 27262 and 27312 main tops.