E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Key Level Early Thursday is 35915

December E-mini Dow Jones Industrial Average futures are trading sharply lower shortly before the close on Wednesday after October’s consumer price reading showed the biggest annual jump in more than 30 years, sending investors into hedges against inflation and triggering a spike in bond yields. As Treasury yields surged, investors dumped high-flying technology stocks and bid up bank stocks.

At 20:42 GMT, December E-mini Dow Jones Industrial Average futures are at 35987, down 222 or -0.61%.

In economic news, the consumer price index jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones and the largest annual increase since 1990. On a monthly basis, the CPI increased 0.9% against the 0.6% estimate. The CPI is a basket of products ranging from gasoline and health care to groceries and rents.

Following the CPI data, traders moved up their expectations for when the first Fed rate hike would occur. The Fed funds futures market now sees greater odds of the central bank’s full rate hike coming in July 2022.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 36446 will signal a resumption of the uptrend. A move through 33984 will change the main trend to down.

The minor trend is also up. A trade through 35383 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 35383 to 36446. Its 50% level or pivot at 35915 was tested earlier today.

The second minor range is 33984 to 36446. If the minor trend changes to down then its 50% level at 35215 will become the next target.

The short-term range is 33383 to 36446. Its retracement zone at 34915 to 34553 is a value zone.

Daily Swing Chart Technical Forecast

The direction of the December E-mini S&P 500 Index into the close and early Thursday is likely to be determined by trader reaction to 35915.

Bullish Scenario

A sustained move over 35915 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into 36178. Overcoming this level could lead to a near-term test of 36446.

Bearish Scenario

A sustained move under 35915 will indicate the selling pressure is getting stronger. A close under this level will put the E-mini Dow in a position to trade lower early Thursday. It will also put a minor bottom at 35383 and a minor pivot at 35215 on the radar.