E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – First Support Zone 26647 to 26470

September E-mini Dow Jones Industrial Average futures broke sharply late Wednesday after the Federal Reserve delivered a message investors didn’t want to hear. The Fed cut its benchmark interest rate by the widely expected 25-basis points, but Fed Chairman Jerome Powell dampened hopes of a lengthy easing cycle. The sell-off did some damage to the daily chart, but the move didn’t indicate the start of a major break. The early price action suggests speculators who had bet on a dovish Fed were forced to bail out.

On Wednesday, September E-mini Dow Jones Industrial Average futures settled at 26855, down 309 or -1.15%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 26657 will reaffirm the downtrend. This could drive the Dow into the next main bottom at 26445.

A trade through 27358 will change the main trend to up. Taking out the next top at 27397 will indicate the buying is getting stronger.

The minor range is 26657 to 27397. Its 50% level or pivot at 27027 is controlling the near-term direction of the Dow.

The intermediate range is 25897 to 27397. Its retracement zone at 26647 to 26470 is the next downside target.

The main range is 24626 to 27397. If the downtrend intensifies then its retracement zone at 26012 to 25685 will become the next downside target.

Daily Swing Chart Technical Forecast

Based on Wednesday’s price action and the close at 26855 will be determined by trader reaction to the intermediate 50% level at 26647.

Bullish Scenario

A sustained move over 26647 will indicate the presence of buyers. If this move creates enough upside momentum then look for a test of the pivot at 27027. Sellers could come in on the first test of this level.

Overtaking 27027 will indicate the buying is getting stronger. This could trigger an acceleration into the pair of tops at 27358 and 27397.

Bearish Scenario

A sustained move under 26647 will signal the presence of sellers. This could trigger a move into the intermediate Fibonacci level at 26470, followed by the main bottom at 26445.

The main bottom at 26445 is a potential trigger point for an acceleration to the downside with the next target the main 50% level at 26012.