E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 34998 Pivot Provides Early Support

September E-mini Dow Jones Industrial Average futures hit a record high on the cash market opening on Wednesday and never looked back after data showed that growth in inflation appeared to have peaked in July, while economically sensitive stocks gained following the passage of an infrastructure bill.

On Wednesday, September E-mini Dow Jones Industrial Average futures settled at 35372, up 217 or +0.61%.

The Labor Department said the consumer price index increased 0.5% last month after climbing 0.9% in June, the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.

In stock related news, equipment maker Caterpillar Inc, up 3.46%, was the biggest boost to the Dow. It has put on a stellar performance since the U.S. Senate passed a $1 trillion bipartisan infrastructure package on Tuesday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35394 will signal a resumption of the uptrend.

A trade through 33623 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the market is currently inside the window of time for a potentially bullish closing price reversal top. This chart pattern won’t change the trend to down, but it could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 34602 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 34602 to 35394. Its 50% level or pivot at 34998 is the nearest support.

The short-term range is 33623 to 35394. If the minor trend changes to down then its retracement zone at 34509 to 34300 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average early Thursday is likely to be determined by trader reaction to the nearest pivot at 34998.

If buyers take out 35394 then this key figure will move up to 35372.

The trend is up, but momentum could start to shift to the downside if 34998 fails early. If buyers take out 35394 first, then momentum will shift to the downside on a sustained move under 35372.