E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 28392 Trigger Point for Upside Breakout

December E-mini Dow Jones Industrial Average futures are trading sharply higher at the mid-session on Thursday as bets on Republicans retaining control of the Senate eased worries of major policy changes that could hurt corporate America under a Joe Biden White House, even as the presidential election hung in balance.

At 18:14 GMT, December E-mini Dow Jones Industrial Average futures are at 28286, up 551 or +1.99%.

With counting continuing in the battle ground states still to be declared, investors were abandoning cautious positioning that many took ahead of the election, driving all of Wall Street’s main indexes higher.

Analysts predicted the fraught nature of the vote would hamper any moves by Congress to deliver more fiscal stimulus and put pressure on the U.S. Federal Reserve to nod to pumping more funds into the financial system, supporting more buying of stocks, according to Reuters.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. The main trend will change to up on a trade through 28846. A move through 25953 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 28392 will change the minor trend to up. This will confirm the shift in momentum.

The major support is the retracement zone at 26714 to 26162. This area was tested successfully earlier in the week.

The short-term range is 28846 to 25953. The market is currently trading on the strong side of its retracement zone at 27741 to 27400, putting it in a bullish position.

Short-Term Outlook

The strong upside momentum should continue as long as the market remains above the short-term retracement zone at 27741 to 27400. This is new support.

A break back under 27741 will indicate the buying is getting weaker, while a trade under 27400 will indicate the selling is getting stronger.

Taking out the minor top at 28392 will confirm the shift in momentum. This could trigger a breakout into the next minor top at 28732. This is a potential trigger point for an acceleration into the main top at 28846 then the all-time high at 29050.

On the downside, the short-term 50% level at 27400 is the trigger point for a potential acceleration into the main 50% level at 26714.