E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 26,226 Weakens Under 26,215

The early price action indicates the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to a price cluster at 26215 to 26226.
James Hyerczyk
Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures rallied over 650 points from its low shortly after the cash market opening on Tuesday after the U.S. said it was delaying China tariffs until December 15 on items including cellphones and clothing. “The U.S. also removed some items from the list of new tariffs outright,” according to CNBC.

At 14:52 GMT, September E-mini Dow Jones Industrial Average futures are trading 26300, up 433 or +1.67%.

Dow component, Apple, surged more than 5% on the news. Retailers were also up with Best Buy soaring 10% and Nike jumping 2%. Macy’s and Nordstrom rallied more than 4%.

Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The main trend turned up when buyers took out the previous top at 26,373. The breakout move only carried the Dow at 26,408 before breaking back under 26,373. This suggests the move was fueled by buy stops rather than aggressive new buying. The main trend will change to down on a trade through 25,750.

The main range is 24,626 to 27,397. Its retracement zone at 26,012 to 25,685 is controlling the near-term direction of the market. It provided support earlier today when the Dow hit its low at 25,750.

The short-term range is 27,397 to 25,032. Its retracement zone at 26,215 to 26,494 is potential resistance despite today’s earlier change in trend to up.

You can see from the chart that the Dow has been trading inside a pair of Fibonacci levels at 25,685 and 26,494 for the past five sessions.

Daily Technical Forecast

The early price action indicates the direction of the September E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to a price cluster at 26,215 to 26,226.

Bullish Scenario

A sustained move over 26,226 will indicate the presence of buyers. The first target is the intraday high at 26,408 followed by the short-term Fibonacci level at 26,494. This level is a potential trigger point for an acceleration into the downtrending Gann angle at 26,725.

Bearish Scenario

A sustained move under 26,215 will signal the presence of sellers. This could trigger a quick sell-off into the main 50% level at 26,012.

Crossing to the weak side of 26,012 could trigger a further break into the intraday low at 25,750 and the main Fibonacci level at 25,685. This is a potential trigger point for an acceleration into the uptrending Gann angle at 25,426.

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