E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Buyers Targeting 32938 into Close

September E-mini Dow Jones Industrial Average futures are trading higher at the mid-session. The blue chip average is being lifted by a broad-based rally in the S&P 500 and NASDAQ Composite.  That move is being fueled by upbeat earnings and a strong U.S. services industry report.

At 16:06 GMT, September E-mini Dow Jones Industrial Average futures are trading 32705, up 340 or +1.05%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $327.52, up $3.48 or +1.07%.

Better-than-expected economic data is contributing to the rally. The ISM Non-Manufacturing Purchasing Managers Index showed a surprise report, helping to dampen concerns over a recession.

Investors also shrugged off the possibility of additional aggressive Federal Reserve rate hikes amid a number of hawkish comments from Fed members on Tuesday. Traders also shook off anxiety that House Speaker Nancy Pelosi’s visit to Taiwan could further strain already tense U.S.-China relations.

In the cash market, the Dow is being led higher by shares of Salesforce Inc and Walt Disney, up 3.62% and 3.53% respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 32938 will signal a resumption of the uptrend. A trade through 30109 will change the main trend to down.

The minor trend is also up. A trade through 31665 will change the minor trend to down. This will shift momentum to the downside.

The main range is 35405 to 29639. The market is currently testing its retracement zone at 32522 to 33202. The zone is controlling the near-term direction of the E-mini Dow. It stopped the rally at 32938 on Monday.

The minor range is 31665 to 32938. Its 50% level or pivot at 32302 is the nearest support.

The short-term range is 30109 to 32938. If the minor trend changes to down then look for a test of its 50% level at 31524.

Daily Swing Chart Technical Forecast

Trader reaction to 32640 is likely to determine the direction of the September E-mini Dow Jones Industrial Average into the close on Wednesday.

Bullish Scenario

A sustained move over 32640 will indicate the presence of buyers. If this creates enough upside momentum then look for a late session surge into the main top at 32938. Taking out this level will reaffirm the uptrend with the main Fibonacci level at 33202 the next target.

Bearish Scenario

A sustained move under 32640 will signal the presence of sellers. A trade through the main 50% level at 32522 will indicate the selling is getting stronger. This could lead to a test of the pivot at 32302.

A trade through 32302 could trigger the start of an acceleration to the downside.