E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Early Gains Erased by Recession Fears

September E-mini Dow Jones Industrial Average futures are trading lower late in the session on Thursday after giving back earlier gains. After a promising start, buyers disappeared amid growing recession fears.

The blue chip average fell even as government bond yields hit two-week lows. However, rate-sensitive growth and technology stocks gained, including Dow components Apple Inc and Microsoft Corp.

At 18:11 GMT, September E-mini Dow Jones Industrial Average futures are trading 30370, down 101 or -0.33%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $303.97, down $0.69 or -0.21%.

Federal Reserve Chair Jerome Powell fueled the recession fears when in his second day of testimony to Congress he said the central bank’s commitment to rein in 40-year-high inflation is “unconditional” but it comes with the risk of higher unemployment.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 29639 will signal a resumption of the downtrend. A move through 33255 will change the main trend to up.

The minor trend is also down. A trade through 30999 will change the minor trend to up. This will also shift the momentum to up.

The minor range is 29639 to 30770. Its pivot is 30205.

The short-term range is 33255 to 29639. If the minor trend changes to up then look for a test of its retracement zone at 31447 to 31874.

Daily Swing Chart Technical Forecast

Trader reaction to 30205 is likely to determine the direction of the September E-mini Dow into the close on Thursday.

Bullish Scenario

A sustained move over 30205 will indicate the presence of buyers. If this creates enough upside momentum then look for a run into yesterday’s high at 30770. Taking out this level will indicate the buying is getting stronger. This could extend the move into the minor top at 30999.

Bearish Scenario

A sustained move under 30205 will signal the presence of sellers. This could trigger a sharp break into the main bottom at 29639.