E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sellers Targeting 33202 Fib Level

September E-mini Dow Jones Industrial Average futures are trading lower during the pre-market session on Friday but remain in a position to post its fourth positive weekly close in five. Nonetheless, this week’s subdued gains and the sideways to lower price action since Tuesday suggests the prolonged rally may be losing steam.

At 08:35 GMT, September E-mini Dow Jones Industrial Average futures are trading 33773, down 208 or -0.61%. On Thursday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $340.64, up $0.44 or +0.13%.

On Thursday, the blue chip average inched higher as an upbeat sales forecast from Dow component Cisco Systems helped give it a lift, while data showed the economy remained relatively strong.

Capping gains were hawkish comments from a pair of Fed officials and a reassessment of the Fed minutes released on Wednesday. Initially, investors viewed the minutes as supporting a less aggressive stance by the central bank. However, upon further review, investors said the minutes did not clearly hint at the pace of rate increases and actually showed policymakers committed to raising rates to tame inflation.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 34246 will signal a resumption of the uptrend. A move through 32342 will change the main trend to down.

The main range is 35405 to 29639. Its retracement zone at 33202 to 32522 is the nearest support. This area is controlling the near-term direction of the E-mini Dow.

Daily Swing Chart Technical Forecast

Trader reaction to 33718 is likely to determine the direction of the September E-mini Dow Jones Industrial Average on Friday.

Bullish Scenario

A sustained move over 33718 will indicate the presence of buyers. If this creates enough upside momentum then look for an intraday rally into 34004. Overcoming this level will indicate the buying is getting stronger with 34246 the next potential target.

Bearish Scenario

A sustained move under 33718 will signal the presence of sellers. If this move creates enough downside momentum then look for a steep break into the Fibonacci level at 33202. Look for a technical bounce on the first test of this level, but if it fails then look for the selling to possibly extend into the 50% level at 32522.