E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 34998 to Sustain Momentum

September E-mini Dow Jones Industrial Average futures are grinding higher on Tuesday, helped by a rebound in oil stocks and the passing of the much-anticipated $1 trillion infrastructure bill. The energy sector tracked a recovery in oil prices from a three-week low and was the top gainer, followed by material shares.

At 18:27 GMT, September E-mini Dow Jones Industrial Average futures are at 35156, up 158 or +0.45%.

In stock-related news, Caterpillar Inc is trading 2.48% higher. Dow Inc is up 2.39% and Walmart Inc is trading 2.18% higher. In the energy sector, Chevron Corp is up 1.94%. The banking sector is being led by Goldman Sachs and JPMorgan Chase, up 2.07% and 1.35%, respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high of 35176 will signal a resumption of the uptrend. A move through 33623 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the Dow is currently inside the window of time for a closing price reversal top.

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 35176. Its 50% level at 34889 is the nearest support.

The short-term retracement zone support is 34400 to 34216.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to 34998.

Bullish Scenario

A sustained move over 34998 will indicate the presence of buyers. Taking out 35176 will indicate the buying is getting stronger. This could trigger an acceleration to the upside if the buying volume is strong enough.

Bearish Scenario

A sustained move under 34998 will signal the presence of sellers. The first downside target is 34889. Buyers could come in on the first test of this level. If it fails then look for a potential acceleration to the downside with 34602 the next likely target.

The minor trend changes to down on a trade through 34602. If it is taken out then look for an eventual move into 34400 to 34216. This is a value zone.

Side Notes

A close under 34998 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.