E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Clear 34619 to Sustain Momentum

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening, but drifting off its intraday high. The rally is being fueled by better-than-expected earnings reports and economic data. Investors seem to be shrugging off any concerns over Fed tapering and interest rate hikes.

At 13:54 GMT, December E-mini Dow Jones Industrial Average futures are at 34582, up 325 or +0.95%.

Dow constituents UnitedHealth and Walgreens Boots Alliance also gained in early morning trading after the companies’ quarterly results topped estimates.

In economic news, a lower-than-anticipated number of weekly jobless claims added to the positive market sentiment. Initial unemployment insurance claims last week totaled 293,000 – the first time the tally fell below the 300,000 level during the pandemic-era.

September’s producer price index, which measures wholesale prices, was lighter than expected, also helping sentiment.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on October 1.

A trade through 34854 will change the main trend to up. A move through 34934 will reaffirm the uptrend. A trade through 33383 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 33984 will indicate the return of sellers.

The main range is 32835 to 35429. Its retracement zone at 34132 to 33826 is support. This zone stopped the selling at 33984 on Wednesday.

The short-term range is 35383 to 33383. The E-mini Dow is currently testing the upper level of its retracement zone at 34383 to 34619.

Daily Swing Chart Technical Forecast

The direction of the E-mini Dow into the close on Thursday is likely to be determined by trader reaction to 34619.

Bullish Scenario

A sustained move over 34619 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for the rally to possibly extend into the main top at 34854, followed closely by another main top at 34934.

Bearish Scenario

A sustained move under 34619 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the short-term 50% level at 34383.

If 34383 fails as support then look for a possible retest of the major retracement zone at 34132 to 33826.