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James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading higher at the mid-session on Monday, building on last week’s solid performance. Hope for a potential coronavirus vaccine helped investors look past record COVID numbers from the weekend.

Dow component Pfizer and German biotech BioNTech SE were granted fast track designation by the FDA for two of the companies’ four vaccine candidates against the coronavirus. Pfizer shares added 5.3%. BioNTech jumped 15.2%.

At 17:05 GMT, September E-mini Dow Jones Industrial Average futures are trading 26415, up 438 or +1.69%.

In other news, corporate profits are expected to fall by 44% in the second quarter, which would be the biggest drop in quarterly earnings since the fourth quarter of 2008, according to Refinitiv data. However, the market could shrug off the sharp profit decline as long as companies signal a recovery on the horizon.

Shares of Disney could take a hit after Hong Kong Disneyland will once again shutter its gates after a spike of new coronavirus cases in Hong Kong.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out 26280 earlier today. The main trend will change to down when sellers take out 25293.

The short-term range is 27466 to 24409. The market is trading on the strong side of its retracement zone at 26298 to 25938, making it support.

The longer-term support zone is 25053 to 24484.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 26298.

Bullish Scenario

A sustained move over 26298 will indicate the presence of buyers. This could create the upside momentum needed to eventually reach the June 9 top at 27466.

Bearish Scenario

A sustained move under 26298 will signal the presence of sellers. This could trigger a retest of the 50% level at 25938. This level is a potential trigger point for an acceleration to the downside with 25293 the next likely target.

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

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