E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Momentum Shifts Lower if 34652 Fails

September E-mini Dow Jones Industrial Average futures settled at a record close for the second consecutive session on Monday after recovering nicely from an early session setback. The blue chip average was supported by expectations of strong earnings this week from a couple of its components like 3M Corp on Tuesday and Boeing on Wednesday. Helping to put a lid on prices and volume were general concerns ahead of Wednesday’s U.S. Federal Reserve announcements.

On Monday, September E-mini Dow Jones Industrial Average futures settled at 35034, up 83 or +0.24%.

In stock related news, Dow Inc posted the best performance amongst the components, settling at $62.01, up $1.90 or +3.161%. This was followed by Intel Corp and Chevron Corp which gained 2.47% and 2.11% respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35072 will reaffirm the uptrend. A move through 33623 will change the main trend to down.

The minor trend is also up. A trade though 35652 will change the minor trend to down and shift momentum to the downside.

The minor range is 34652 to 35072. Its 50% level or pivot is 34862.

The short-term range is 33623 to 35072. If the minor trend changes to down then look for a pullback into its retracement zone at 34348 to 34177.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the pivot at 34862.

Bullish Scenario

A sustained move over 34862 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at 35072. Since there is no resistance, taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 34862 will signal the presence of sellers. The first downside target is the minor bottom at 34652. Taking out this level will change the minor trend and shift momentum to the downside. If this move creates enough downside momentum then look for the selling to possibly extend into the short-term retracement zone at 34348 to 34177. Since the main trend is up, buyers are likely to show up on a test of this area.