E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Looking for Test of 34999 – 34880

September E-mini Dow Jones Industrial Average futures fell on Tuesday amid lingering concerns about the delta variant’s impact on the economic reopening.

Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. Goldman now sees 5.7% annual growth in 2021, below the 6.2% consensus. The firm cut its fourth-quarter GDP outlook to 5.5%, down from 6.5%.

“The hurdle for strong consumption growth going forward appears much higher:  the delta variant is already weighing on Q3 growth, and fading fiscal stimulus and a slower service sector recovery will both be headwinds in the medium term,” stated the Goldman note.

On Tuesday, September E-mini Dow Jones Industrial Average futures settled at 35091, down 262 or -0.75%.

In stock related news, Boeing Co dropped 1.8% after Ireland’s Ryanair said it had ended talks with the planemaker over a purchase of 737 MAX 10 jets worth tens of billions of dollars due to differences over price. Merck & Co lost 1.6% after Morgan Stanley cut its rating on the stocks to “equal-weight” from “overweight.”

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Tuesday when sellers took out the last swing bottom at 35114. The followed the formation of potentially bearish closing price reversal tops on four out of the last five sessions.

A trade through 35504 will negate the closing price reversal top and signal a resumption of the uptrend.

The short-term range is 34494 to 35504. Its retracement zone at 34999 to 34880 is the next downside target zone. Aggressive counter-trend buyers could come in on a test of this zone.

The main range is 33623 to 35547. If the selling pressure continues through 34880 then look for the selling to possibly extend into its retracement zone at 34585 to 34358. Inside this zone is another main bottom at 34494.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to 35271.

Bearish Scenario

A sustained move under 35271 will indicate the presence of sellers. The first downside target is the short-term 50% level at 34999, followed by the short-term Fibonacci level at 34880.

Buyers could come in on the first test of 34999 to 34880. If 34880 fails then look for a potential acceleration into the main retracement zone at 34585 to 34358.

Bullish Scenario

Overtaking 35271 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible surge into the closing price reversal top at 35504.