E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 33826 Sets Tone into Close

December E-mini Dow Jones Industrial Average futures are trading sharply lower late in the session on Monday as a broad sell-off in technology shares spread to the blue chip average. Investors shifted out of technology issues in the face of rising Treasury yields. Meanwhile, fresh U.S.-China concerns over trade also gave investors an excuse to reduce risk exposure.

At 18:05 GMT, December E-mini Dow Jones Industrial Average futures are trading 33818, down 349 or -1.02%.

Weighing on the Dow were components Visa, which lost 2.81%, Apple Inc, which was off by 2.58% and Microsoft Corp, which was down 2.41%.

On the good side, Merck & Co Inc is up 1.55% and Chevron Corp is trading 0.74% higher. Merck built on gains from Friday after developing an experimental antiviral pill for those most at risk of contracting severe COVID-19. Chevron rose as crude oil hit another three-year high.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 33383 will negate Friday’s closing price reversal bottom and signal a resumption of the downtrend.

A trade through 34354 will confirm the closing price reversal bottom. This will shift momentum to the upside.

The main trend will change to up on a trade through 34934.

The main range is 32835 to 35429. The market is currently testing the lower end of its retracement zone at 34132 to 33826.

The short-term range is 35383 to 33383. Its retracement zone at 34383 to 34619 is resistance.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow into the close on Monday is likely to be determined by trader reaction to 33826.

Bearish Scenario

A sustained move under 33826 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into Friday’s low at 33383.

Taking out 33383 will indicate the selling pressure is getting stronger. This could trigger an acceleration into the June 21 main bottom at 32835.

Bullish Scenario

A sustained move over 33826 will signal the return of buyers. This could trigger the momentum needed to retest the main 50% level at 34132.

Overtaking 34167 will turn the Dow higher for the day. This would be a bullish sign.