E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Big Challenge for Bulls at 27729 – 28040

December E-mini Dow Jones Industrial Average futures are soaring on Wednesday amid rising hopes for further fiscal stimulus. Nonetheless, the market remains untrack to post its first negative month since March.

The blue chip futures market was down sharply during the pre-market session as investors digested the first debate between President Donald Trump and Democratic nominee Joe Biden Tuesday evening. The debate failed to offer anything of value to voters or investors as it consisted of a series of vicious insults and constant interruptions. The negative tone set by both candidates encouraged investors to dump risky assets overnight.

At 14:53 GMT, December E-mini Dow Jones Industrial Average futures are trading 27695, up 287 or +1.05%.

The market turned positive on the opening after Treasury Secretary Steven Mnuchin struck an optimistic tone about reaching a coronavirus aid deal on Wednesday after the stalemate in Washington dragged on for weeks.

“I say we’re going to give it one more serious try to get this done and I think we’re hopeful that we can get something done,” Mnuchin said at the Delivering Alpha conference presented by CNBC and Institutional Investor. “I think there is a reasonable compromise here.”

Daily Swing Chart Technical Analysis

The main trend is down but momentum is trending higher. A trade through 28251 will change the main trend to up. A move through 26407 will signal a resumption of the downtrend.

The minor trend is up. It changed to up earlier today when buyers took out Tuesday’s high at 27619. This confirmed the shift in momentum to the upside.

The main range is 24377 to 29050. Its retracement zone at 26714 to 26162 is support. It stopped the selling last week at 26407.

The minor range is 28251 to 26407. The market is currently trading on the strong side of its retracement zone at 27547 to 27329, making it support.

The short-term range is 29050 to 26407. Its retracement zone at 27729 to 28040 is the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action. The direction of the December E-mini Dow Jones Industrial Average futures contract into the close on Wednesday is likely to be determined by trader reaction to 27729 and 27574.

Bullish Scenario

A sustained move over 27729 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge the Fibonacci level at 28040, followed closely by the main top at 28251.

Bearish Scenario

The inability to sustain a rally over 27729 will indicate the presence of sellers. This could lead to a test of 27547. If this fails then look for the selling to possibly extend into 27329.

For a look at all of today’s economic events, check out our economic calendar.