E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Investors Shed Risk on Pelosi Jitters

September E-mini Dow Jones Industrial Average futures are edging lower during the pre-market session on Tuesday, pressured by worries about an escalation in Sino-U.S. tensions over U.S. House of Representatives Speaker Nancy Pelosi’s trip to Taiwan.

The news is adding to already heightened worries over a global recession. Safe-haven buying is helping to drive U.S. Treasury yields lower, but stock traders don’t seem to be reacting to that news. Falling yields have been supportive for stocks lately.

At 08:07 GMT, September E-mini Dow Jones Industrial Average futures are trading 32668, down 99 or -0.30%. On Monday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $328.01, down $0.65 or -0.20%.

In economic news, the JOLTS Job Openings report comes out at 14:00 GMT. Traders are looking for a reading of 10.99 million. It has been coming down since May 3. Last month, it came in at 11.25 million. A lower than expected reading can be perceived as bearish for the U.S. Dollar.

At 22:45 GMT, after the stock market close, FOMC Member James Bullard speaks. He could move the markets since he usually gives an opinion about the direction of interest rates.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, the confirmation of Monday’s closing price reversal top shifted momentum to the downside.

A trade through 39238 will negate the closing price reversal top. A move through the main top at 33255 will reaffirm the uptrend. The main trend will change to down on a move through the nearest main bottom at 30109.

The minor trend is up. A trade through the nearest minor bottom at 31665 will change the minor trend to down.

Resistance is the long-term retracement zone at 32522 to 33202. This zone stopped the rally at 32938 on Monday.

The first support is the minor pivot at 32302. This is followed by a short-term retracement zone at 31874 to 31447.

Daily Swing Chart Technical Forecast

Trader reaction to 32757 is likely to determine the direction of the September E-mini Dow Jones Industrial Average on Tuesday.

Bullish Scenario

A sustained move over 32757 will indicate the presence of buyers. The first upside target is the minor top at 32938. Taking out this level could extend the rally into a Fibonacci level at 33202, followed by a main top at 33255. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 32757 will signal the presence of sellers. The first downside target is the long-term 50% level at 32522.

A trade through 32522 will indicate the selling pressure is getting stronger with a minor pivot at 32302 the next target. This is a potential trigger point for an acceleration into the short-term retracement zone at 31874 to 31447.