E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Closed on Bullish Side of Fibonacci Level at 26494

Trading will begin on Monday with the Dow well above support and well below resistance. Therefore, we’re going to focus on the chart pattern. The session begins with the September E-mini Dow Jones Industrial Average up eight days from its last main bottom. This puts it in the window of time for a closing price reversal top.
James Hyerczyk
Daily September E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures finished higher on Friday, underpinned by optimism over the resumption of trade talks between the United States and China in early October, but capped by a mixed U.S. Non-Farm Payrolls report. Upbeat comments from Federal Reserve Chairman Jerome Powell also helped nudge prices higher.

On Friday, September E-mini Dow Jones Industrial Average futures settled at 26808, up 107 or +0.40%.

Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Although the main trend turned up the previous week, the price action suggested the market wasn’t ready to move higher because of the light volume ahead of the U.S. holiday weekend.

After regrouping early in the week, the uptrend resumed on September 5 when the Dow exploded over 26559. The main bottom is 25266. A trade through this bottom will change the main trend to down.

The minor trend is also up. The minor trend will change to down on a trade through 25977. This will shift momentum to the downside.

The short-term range is 27397 to 25032. Its retracement zone at 26494 to 26215 is support. Holding above this area is helping to generate an upside bias.

The main range is 24626 to 27397. Its retracement zone at 26012 to 25685 is major support. This zone is also controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

Trading will begin on Monday with the Dow well above support and well below resistance. Therefore, we’re going to focus on the chart pattern. The session begins with the September E-mini Dow Jones Industrial Average up eight days from its last main bottom. This puts it in the window of time for a closing price reversal top.

Bullish Scenario

A sustained move over 26869 will indicate the presence of buyers. The daily chart indicates there is no resistance until 27358 to 27397.

Bearish Scenario

A sustained move under 26869 will signal the presence of sellers. Selling pressure should increase if the market turns lower for the session under 26808. Taking out Friday’s low at 26686 will indicate the selling is getting stronger with 26494 the next likely downside target.

Closing Price Reversal Top

Taking out Friday’s high at 26869 then turning lower for the day will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

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