E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 35303 Set Early Tone on Weds

September E-mini Dow Jones Industrial Average futures are edging higher late Tuesday, keeping, its strong August performance intact. While a strong recovery in economic growth and corporate earnings have boosted the blue chip average in August, investors are concerned about rising coronavirus cases and the path of Fed policy.

At 20:21 GMT, September E-mini Dow Jones Industrial Average futures are trading 35377, up 25 or 0.07%.

The best performer of the day was Walgreens Boots Alliance Inc. It finished the day at $50.75, up $2.12 or +4.36%. The biggest loser was Nike Inc. It closed at $164.74, down $3.29 or -1.958.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the intraday high at 35492 will signal a resumption of the uptrend. A move through 35114 will change the main trend to down.

The minor range is 35114 to 35492. The Dow is currently trading on the bullish side of its pivot at 35303.

The short-term range is 34494 to 35492. If the main trend changes to down then its retracement zone at 34993 to 34875 will become the primary target zone.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average futures contract into the close on Tuesday will be determined by trader reaction to 35352.

Bullish Scenario

A sustained move over 35352 will indicate the presence of buyers. This could fuel an upside bias early Wednesday. If the move picks up momentum then look for the rally to possibly extend into 35492, followed by the main top at 35547.

Bearish Scenario

A sustained move under 35352 will signal the presence of sellers. This could put pressure on the Dow early Wednesday. If this creates enough downside momentum then look for the selling to possibly extend into the minor pivot at 35303.

Look for buyers on the first test of 35303. If it fails, we could see an acceleration to the downside with the next potential target the main bottom at 35114.

If 35114 fails as support then look for the selling to possibly extend into the short-term retracement zone at 34993 to 34875.