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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Late Session Rally Fueled by Dovish Fed Member Comments

Based on today’s price action and the current price at 27207, the direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 27205.
James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market close, but nearing its high for the session. The catalysts behind the intraday comeback are comments from New York Federal Reserve President John Williams, who said just a short while ago that “it’s better to take preventative measures than to wait for disaster to unfold.” Investors interpreted this to mean a rate cut was coming at the end of July.

At 06:32 GMT, September E-mini Dow Jones Industrial Average futures are trading 27207, down 26 or -0.10%. This is up from an intraday low of 27057.

Williams further added, rather than keep rates elevated to give central banks room to cut in the face of a crisis, the proper move is not to “keep your power dry.”

He also said it’s better to “act quickly” to lower rates during “economic distress.”

Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27397 will signal a resumption of the uptrend. The main trend changes to down on a trade through 26657.

The short-term range is 26657 to 27397. Its retracement zone at 27027 to 26940 is potential support.

Daily Technical Forecast

Based on today’s price action and the current price at 27207, the direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 27205.

Bullish Scenario

A sustained move over 27205 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into a pair of downtrending angles at 27301 and 27349. Overtaking the latter will put the Dow in a position to challenge the main top at 27397.

Bearish Scenario

A sustained move under 27205 will signal the presence of sellers. This could trigger a break into an uptrending Gann angle at 27105. If this fails then look for a retest of today’s low at 27057, followed by the short-term 50% level at 27027.

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