E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 26999 Pivot Controlling Price Action

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening on Tuesday. The Dow was boosted early in the pre-market by growing optimism that the U.S. and China may work out a partial deal at next week’s October 10-11 meeting.

Bank shares are providing the biggest boost to the market on Tuesday. Rising Treasury yields are expected to boost bank profits, making their stocks more desirable investments.

At 13:36 GMT, December E-mini Dow Jones Industrial Average futures are trading 26983, up 82 or +0.30%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 27262 will change the main trend to up. A move through 26636 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 27112 will change the main trend to up. This will shift momentum to the upside.

The minor range is 27312 to 26686. Its 50% level or pivot at 26999 is controlling the direction of the Dow today.

Retracement zone support levels come in at 26473, 26278, 26195 and 26034.

Daily Swing Chart Technical Forecast

Based on the early trade and the current price at 26983, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the minor pivot at 26999.

Bullish Scenario

A sustained move over 26999 will indicate the presence of buyers. The next upside target is the minor top at 27112. Taking out the minor top will indicate the buying is getting stronger. This will shift momentum to the upside and put the Dow in a position to challenge the four main tops at 27262, 27312, 27338 and 27375.

Bearish Scenario

A sustained move under 26999 will signal the presence of sellers. If this move generates enough downside momentum then look for a potential acceleration into last week’s low at 26686. This is the last potential support before the main Fibonacci target at 26473.