E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 34655 to Sustain Momentum

December E-mini Dow Jones Industrial Average futures are trading higher early Tuesday after bucking the overall trend in the market with a slight gain yesterday. The Dow posted a gain on Monday as investors pivoted into value stocks at the expense of those holding technology shares.

While the S&P and NASDAQ exposure to technology shares weighed on these indexes, the Dow was supported by stronger financials and industrials. Helping to keep a lid on the Dow were weak performances in Microsoft Corp and Apple Inc.

At 02:32 GMT, December E-mini Dow Jones Industrial Average futures are trading 34771, up 28 or +0.08%.

In economic news, new orders for durable goods posted better than expected results, gaining 1.8% in August. The value of total new orders has grown beyond pre-pandemic levels to a seven-year high.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 35383 will change the main trend to up. A move through 33478 will signal a resumption of the downtrend.

The minor trend is up. It turned up on Monday when buyers took out 34826, shifting momentum to the upside. It was reaffirmed when they drove through 34907. A trade through 34934 will indicate the buying is getting stronger.

The short-term range is 35383 to 33478. The Dow is currently trading on the strong side of its retracement zone at 34655 to 34431, making it new support.

Short-term support comes in at 34206 to 34034. Longer-term support is 34132 to 33826.

Daily Swing Chart Technical Forecast

The early direction of the December E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to 34655.

Bullish Scenario

A sustained move over 34655 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into 34934. Taking out this level will indicate the buying is getting stronger with 35076 the next likely target.

The minor top at 35076 is the last potential resistance before the 35383 to 35429 main tops.

Bearish Scenario

A sustained move under 34655 will signal the presence of sellers. If this generates enough downside momentum then look for a quick break into the 50% level at 34431. Look for a technical bounce on the first test of this level. If it fails then watch for the selling to possibly extend into a potential support cluster at 34206, 34132 and 34034.