E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 30198 Forms Reversal Top

December E-mini Dow Jones Industrial Average futures are trading slightly lower early Monday after a record-setting performance last week as Wall Street investors searched for clues on additional fiscal aid following the release of a bleak U.S. jobs report on Friday. The blue chip average posted intraday and closing all-time highs on Friday, jumping more than 200 points.

At 07:13 GMT, December E-mini Dow Jones Industrial Average futures are trading 30131, down 67 or -0.22%.

On Friday, the U.S. Labor Department released disappointing U.S. jobs data, which actually gave stocks a boost by lifting expectations of a new fiscal stimulus package being passed before year-end.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers edged through Friday’s high. The rally stalled at 302.65, however, on low volume. A trade through 29428 will change the main trend to down.

The minor trend is also up. A trade through 29589 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 29428 to 30265. Its 50% level at 29847 is potential support.

The second minor range is 28328 to 30265. Its 50% level at 29297 is another potential support price.

The new short-term range is 25953 to 30265. If the trend changes to down then its retracement zone at 28109 to 27600 will become the primary downside target.

Daily Swing Chart Technical Forecast

Today’s session begins with the market inside the window of time for a closing price reversal top. Its direction will be controlled by 30198.

Bullish Scenario

A sustained move over 30198 will indicate the presence of buyers. This could lead to a test of the intraday high at 30265. Taking out this level will signal a resumption of the uptrend. If this move creates enough upside momentum then look for a potential acceleration to the upside.

Bearish Scenario

A sustained move under 30198 will signal the presence of sellers. This could trigger a break into 29847. If this level fails as support then look for the selling to possibly extend into the minor bottom at 29589, followed by the main bottom at 29428 and the second 50% level at 29297.

A close under 30198 will produce a potentially bearish closing price reversal top. If confirmed, it could trigger the start of a 2 to 3 day correction.