E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Needs to Hold 35620 to Sustain Momentum

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening on Tuesday with the move driven by strong earnings reports before the bell and in anticipation of the trend to continue with reports after the bell.

At 13:31 GMT, the blue chip average is trading 35718, up 81 or +0.23%. This is down from an overnight high of 35759.

Dow companies on the move include Cisco Systems (+1.56%), Apple Inc (+0.90%), Procter & Gamble Co (+0.88%), Visa Inc (+0.59%) and Microsoft Corp (+0.53%).

In economic news, a housing report showed signs that price growth could be cooling off in the otherwise red-hot housing mark

Prices rose 19.8% year over year in August, which was the same as the previous month, according to the S&P CoreLogic Case-Shiller Indices. That is the first time the annual gain hasn’t increased since early 2020.

The 10-city composite annual increase was 18.6%, down from 19.2% in July. The 20-city composite rose 19.7% year-over-year, down from 20% in the previous month. Prices in all cities covered are at an all-time high.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 35759 will signal a resumption of the uptrend. There is no upside target.

A trade though 33984 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, we’re expecting to see a potentially bearish closing price reversal top before we see a change in trend.

The minor range is 33984 to 35759. Its retracement zone at 34872 to 34662 is the nearest support.

The short-term range is 33383 to 35759. Its retracement zone at 34571 to 34291 is another support area.

The two combine to form a support cluster at 34662 to 34571.

These retracement zones will move up as the E-mini Dow moves higher.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to 35620.

Bullish Scenario

A sustained move over 35620 will indicate the presence of buyers. Taking out the overnight high at 35759 will indicate the buying is getting stronger. This could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 35620 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the previous main top at 35429.

Taking out 35429 will indicate the selling pressure is getting stronger. This could lead to an acceleration to the downside with 34872 the first target.

Closing Price Reversal Top

A close under 35620 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with 34872 to 34662 the next likely target area.