September E-mini Dow Jones Industrial Average futures are inching higher shortly before the cash market close. The trade on Tuesday can best be described as uninspiring. Volume and volatility are well below average, leading to an inside trading range. This tends to indicate investor indecision and impending volatility.

After Monday’s spike to the upside early in the session, buying volume has dried up. It could be a reaction to general nervousness ahead of the start of trade talks between the United States and China. Or concerns over the threat of new tariffs against the European Union, or just a lack of conviction in front of Thursday’s U.S. bank holiday and Friday’s Non-Farm Payrolls report.

On these types of days, one has to trade with caution. The price levels are there, but the volume isn’t so one has to be careful about buying strength or selling weakness.

At 18:33 GMT, September E-mini S&P 500 Index futures are trading 26707, up 7 or +0.03%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26896 will signal a resumption of the uptrend. This could trigger a rally into the October 3, 2018 main top at 27031.

The main trend will change to down on a trade through 26445. This could trigger a steep break with 25897 the next potential downside target.

The short-term range is 26922 to 26445. Its retracement zone at 26684 to 26740 is controlling the near-term direction of the Dow.

The intermediate range is 25897 to 26922. If the trend changes to down then its retracement zone at 26410 to 26289 will become the next downside target.

The main range is 24626 to 26922. Its retracement zone comes in at 25774 to 25503.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 26707, trader reaction to the short-term retracement zone at 26684 to 26740 will determine the direction of the September E-mini Dow Jones Industrial Average into the close.

Bullish Scenario

Holding above the 50% level at 26684 will indicate the presence of buyers, but taking out the Fibonacci level at 26740 will indicate the buying is getting stronger. If this move creates enough upside momentum then look for buyers to make a run at 26896, followed by the main top at 26922.

Bearish Scenario sustained move under 26684 will signal the presence of strong sellers. If this move can generate enough downside momentum then look for a break into 26445 to 26410.

Overview

The direction of the Dow into the close will be determined by momentum. The lack of momentum in either direction likely means the market will straddle 26684 to 26740 the best of the session.