E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 34870 to Sustain Momentum

September E-mini Dow Jones Industrial Average futures are edging lower late in the session on Monday as investors continued to digest Friday’s robust U.S. Non-Farm Payrolls report and its potential impact on Federal Reserve policy, while dealing with a sharp rise in COVID infections and a plunge in commodity prices.

At 17:45 GMT, September E-mini Dow Jones Industrial Average futures are trading 35022, down 69 or -0.20%.

Oil prices dropped on Monday, continuing last week’s sell-off, as rising COVID cases caused concern of a slowdown in demand. U.S. benchmark West Texas Intermediate crude futures declined more than 4% to trade at $65.15 earlier in the session. Oil’s slide pressured Dow component Chevron, which dropped 1.44%.

In other stock related news, Visa Inc is down 1.17%, followed by Amgen, which is off by 1.14%. Goldman Sachs and JPMorgan Chase are up 1.20% and 0.60%, respectively, as investors bet a rise in interest rates would boost bank profits.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35137 will signal a resumption of the uptrend. A move through 33623 will change the main trend to down. Monday’s inside move suggests investor indecision and impending volatility.

The minor trend is also up. A trade through 34602 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 34602 to 35137. Its 50% level or pivot at 34870 is the nearest support.

The short-term range is 33623 to 35137. If the minor trend changes to down then look for a break into its retracement zone at 34380 to 34201.

Daily Swing Chart Technical Forecast

The short-term direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the pivot at 34870.

Bullish Scenario

A sustained move over 34870 will indicate the presence of buyers. If this move creates enough upside momentum then look for the buying to possibly extend into the record high at 35137. Taking out this level will reaffirm the uptrend.

Bearish Scenario

A sustained move under 34870 will signal the presence of sellers. If this move attracts enough sellers then look for the move to possibly extend into the minor bottom at 34602. This is a potential trigger point for an acceleration to the downside, so if it fails then look for the selling to possibly extend into the short-term retracement zone at 34380 to 34201.