E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Slight Upside Bias Amid Mixed News

September E-mini Dow Jones Industrial Average futures are edging higher late in the session on Wednesday. Even though the blue chip average failed to follow-through to the downside, following yesterday’s steep sell-off.

Traders appear to be shrugging off hawkish comments from Fed officials and a report confirming a contraction in the economy during the first quarter. Helping to underpin the market is a drop in Treasury yields.

At 18:29 GMT, September E-mini Dow Jones Industrial Average futures are trading 31104, up 171 or +0.55%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $311.20, up $1.86 or +0.60%.

Fed Members Not Wavering on Rate Hikes

On Wednesday, Fed Chair Jerome Powell said the Federal Reserve will not let the economy slip into a “higher inflation regime” even if it means raising interest rates that put growth at risk.

Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester told CNBC on Wednesday if economic conditions remain the same, she will advocate for a 75 basis points (bps) hike in interest rates at the U.S. central bank’s next monetary policy meeting in July.

Report Confirms First Quarter GDP Contraction

Gross Domestic Product fell at a 1.6% annualized rate last quarter, revised down from the 1.5% pace of decline reported last month. Economists polled by Reuters had forecast the pace of contraction would be unrevised at a 1.5% rate.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Momentum is trending higher, however. A trade through 31867 will change the main trend to up. A move through 29639 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum.

The intermediate range is 33255 to 29639. Its retracement zone at 31447 to 31874 is resistance. It stopped the rally at 31867 on Tuesday.

The short-term range is 29639 to 31867. Its 50% level at 30253 is the nearest downside target.

Daily Swing Chart Technical Forecast

Trader reaction to 31364 is likely to determine the direction of the September E-mini Dow Jones Industrial Average into the close on Wednesday.

Bearish Scenario

A sustained move under 31364 will indicate the presence of sellers. Taking out the intraday low at 30861 will indicate the selling pressure is getting stronger. Look for the selling to possibly extend into 30253 over the short-run if this move creates enough downside momentum.

Bullish Scenario

A sustained move over 31364 will signal the presence of buyers. This could trigger a late session surge into 31447, followed by the resistance cluster at 31867 – 31874.