E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Buyers Could Step in at 34585 – 34358

September E-mini Dow Jones Industrial Average futures are trading lower in overnight trading on Thursday after Wall Street suffered a sell-off the previous session as meeting minutes showed the Federal Reserve started eyeing tapering before the year-end.

At 06:21 GMT, September E-mini Dow Jones Industrial Average futures are trading 34739, down 148 or -0.42%.

Central bank policymakers at their July meeting made plans to pull back the pace of their monthly bond purchases likely before the end of 2021, the minutes showed.

Looking ahead to today’s regular session, investors will monitor new jobless claims data due Thursday morning. Economists polled by Dow Jones expect a total of 365,000 in the week-ended August 14, slightly below the total of 375,000 in the prior week.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 33623 will change the main trend to down. A move through 35547 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. Taking out the next minor bottom at 34602 will indicate the selling pressure is getting stronger.

The minor range is 34602 to 35547. Its 50% level at 35075 is potential resistance. This is followed by another pivot at 35119.

The short-term range is 33623 to 35547. Its retracement zone at 34585 to 34358 is the next downside target. Since the main trend is up, buyers could come in on a test of this area.

The main retracement zone support is at 34225 to 33912. This is followed by a long-term 50% level at 33696.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to 34887.

Bearish Scenario

A sustained move under 34887 will indicate the presence of sellers. The first downside target is the minor bottom at 34602, followed by the short-term 50% level at 34585. Watch for buyers on the first test of this level.

If 34585 fails as support then look for the selling to possibly extend into the short-term Fibonacci level at 34358. Once again, look for buyers to show up on the first test of this level.

Bullish Scenario

A sustained move over 34887 will signal the return of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into 35075, followed closely by 35169.