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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – No Threat to Strong Uptrend at This Time

By:
James Hyerczyk
Published: Aug 6, 2021, 20:30 UTC

There is no resistance. We’re not looking for a price to stop this rally anyway but rather a chart pattern like a closing price reversal top.

E-mini Dow Jones Industrial Average Up

In this article:

September E-mini Dow Jones Industrial Average futures are trading higher late in the session on Friday after touching a record high earlier in the session. Investors jumped on economy-linked sector stocks following a better-than-expected rise in jobs in July, while investors continued to downplay the impact of the Delta variant given the increase in vaccination rates.

At 20:08 GMT, September E-mini Dow Jones Industrial Average futures are trading 35091, up 147 or +0.42%.

In economic news, the Labor Department reported nonfarm payrolls rose by 943,000 jobs in July versus a consensus estimate of 870,000. The unemployment rate fell to 5.4% and average hourly earnings increased more than expected.

In stock related news, the financial sector shined with Goldman Sachs rising 3.54%. JPMorgan Chase rose 2.84% and American Express was up 1.02%. Technology-driven stocks were down in the session. Dow components Apple and Microsoft lost 0.48 and 0.02% respectively.

Daily September E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when buyers took out the previous record high at 35082. A trade through 33623 will change the main trend to down.

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. The E-mini Dow is currently trading on the strong side of its 50% level at 34870.

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

Daily Swing Chart Technical Forecast

There is no resistance so prices could continue to climb. We’re not looking for a price to stop this rally anyway but rather a chart pattern like a closing price reversal top.

We’re also not looking for a change in the main trend, but could tolerate a short-term change in momentum.

Although some may view the market as overbought or overvalued, keep in mind that the trend is your friend and that trying to pick a top in only feeding the bull.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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