E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Looking for Clean Breakout Over 28069

September E-mini Dow Jones Industrial Average futures are breaking out to the upside of an eight-session range on Monday, spurred by positive developments over the treatment of COVID-19 patients.

The Federal Drug Administration (FDA) approved emergency use of antibody-rich blood plasma on COVID-19 patients and the Trump administration is considering fast-tracking an experimental COVID-19 vaccine developed by AstraZeneca Plc and Oxford University for use in the United States before election.

Both moves lifted treatment hopes and spurred bets of a quicker economic recovery.

The news comes on the eve of the Republican National Convention, where Trump will be nominated to lead his party for four more years, kicking off the final sprint to November 3 Election Day.

At 15:12 GMT, September E-mini Dow Jones Industrial Average futures are trading 28067, up 208 or +0.82%.

Dow component Apple, Inc gained another 1.8% premarket and was on track to open above $500 per share for the first time. The iPhone maker became the first public U.S. company to cross $2 trillion in market value last week.

Today is the “record date” for Apple’s recently announced 4-for-1 stock split, applying to shareholders of record as of the close of business today. The shares are set to begin trading on a split-adjusted basis on August 31.

Dow Component Deere is also making the news. Bank of America Securities upgraded the heavy equipment maker to “buy” from “neutral,” after Deere reported a blowout quarter and raised earnings estimates. The firm said Deere’s earnings momentum is clearly building into next year, boosted in part by improved margins in its agriculture business.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out the last high at 28069. The main trend will change to down on a move through the nearest swing bottom at 25881.

The minor trend is also up. A trade through 27392 will change the minor trend to down. This will also shift momentum to the downside.

Daily Swing Chart Technical Forecast

The market is being driven by strong upside momentum. A break back under 28069 will indicate that momentum is beginning to shift to the downside.

A close under 27859 will form a potentially bearish closing price reversal top. This won’t change the trend, but it could signal the start of a 2 to 3 day correction.