E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Lackluster Trade Ahead of NFP

September E-mini Dow Jones Industrial Average futures are trading slightly lower late in the session on Thursday in a lackluster trade as investors await the release of the latest U.S. Non-Farm Payrolls report on Friday.

The report could provide clues on the size and pace of future interest rate hikes by the Federal Reserve. Currently, traders are mixed about whether the Fed hikes 50 or 75 basis points at its September 21 monetary policy meeting.

At 19:11 GMT, September E-mini Dow Jones Industrial Average futures are trading 32706, down 64 or -0.20%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $327.32, down $0.84 or -0.26%.

The closely watched U.S. employment report is due to be released on Friday at 12:30 GMT. Economists are predicting the economy added 250K new jobs in July. The unemployment rate is expected to hold steady at 3.6% and Average Hourly Earnings expected to gain 0.3%.

Any signs of strength in the labor market could feed fears of aggressive measures by the Fed. Of particular interest for the Fed will be Average Hourly Earnings since they represent a form of inflation.

There were more stocks down than up on Thursday. On the plus side, 3M Company is the biggest gainer, posting a 3.23% gain. Visa Inc jumped 2.39% and American Express advanced 0.93%. The losers include Walmart, which declined 3.78% and Chevron Corp., down 2.72%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 32938 will reaffirm the uptrend.

The minor trend is also up. A trade through 32342 will change the minor trend to down. This will also shift momentum to the downside.

The E-mini Dow is currently trading inside a major long-term retracement zone at 32522 to 33202. This area is controlling the near-term direction of the market.

On the downside, the minor support is a pivot at 32302.

Short-Term Outlook

Trader reaction to a pair of 50% levels at 32522 and 32302 is likely to determine the near-term direction of the E-mini Dow.

Look for the upside bias to continue on a sustained move over 32522 and for a downside bias to develop on a sustained move under 32302.