E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 34867 Pivot Sets the Tone

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening as investors attempt to recover from yesterday’s steep decline.

Investors are closely monitoring progress in Washington as lawmakers move toward a bipartisan infrastructure bill that would devote $550 billion to U.S. infrastructure. Senate Majority Leader Chuck Schumer aims to rush the 2,702-page legislation through the chamber before a planned month-long recess starting August 9.

At 13:08 GMT, September E-mini Dow Jones Industrial Average futures are trading 34808, up 87 or +0.25%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, yesterday’s closing price reversal top suggests momentum may be getting ready to shift to the downside.

A trade through 35082 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 33623.

A move through 34694 will confirm the closing price reversal top. This will shift momentum to the downside and could signal the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 34652 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 34652 to 35082. The market is currently trading on the weak side of its pivot at 34867.

The short-term range is 33623 to 35082. If the minor trend changes to down then its retracement zone at 34353 to 34180 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to 34867.

Bearish Scenario

A sustained move under 34867 will indicate the presence of sellers. Taking out 34694 will confirm the closing price reversal top. This could trigger a break into the minor bottom at 34652.

A trade through 34652 will change the minor trend to down. This could trigger an acceleration to the downside with the next major target zone 34353 to 34180.

Bullish Scenario

A sustained move over 34867 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the record high at 35082.

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