E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens Over 27039, Weakens Under 26909

December E-mini Dow Jones Industrial Average futures are trading higher early Friday as investors appear to have shaken off the jitters caused by some negative chatter over U.S.-China trade relations. The Fed rate cut on Wednesday and potentially bullish comments from central bank chief Jerome Powell about the low chances of a rate hike could be underpinning the market.

At 04:39 GMT, December E-mini Dow Jones Industrial Average futures are at 27038, up 56 or +0.21%.

Traders could also be squaring positions ahead of today’s U.S. Non-Farm Payrolls report, due to be released at 12:30 GMT. The headline number is expected to show the economy added 90K jobs in October. The unemployment rate is expected to inch higher to 3.6% and Average Hourly Earnings are expected to have risen by 0.3%.

Traders will also get the chance to react to the ISM Manufacturing PMI report. It is expected to come in at 49.00, up from 47.8 but still in contraction.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside on Thursday. A trade through 27230 will signal a resumption of the uptrend. The main trend will change to down on a move through 26588.

The minor trend is down. The trend turned down on Thursday. This shifted momentum to the downside.

The first minor range is 27230 to 26847. Its 50% level or pivot at 27039 could control the direction of the market today. It’s minor resistance.

The short-term range is 26588 to 27230. Its 50% level or pivot at 26909 is support.

The main range is 25703 to 27230. Its retracement zone at 26467 to 26286 is the main support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 27038, the direction of the December E-mini Dow Jones Industrial Average futures contract on Friday is likely to be determined by trader reaction to the pivot at 27039.

Bullish Scenario

Overtaking and sustaining a rally over 27039 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to possibly extend into this week’s high at 27230.

Taking out 27230 will indicate the buying is getting stronger. This could trigger a move into the three main tops at 27262, 27312 and 27375.

Bearish Scenario

A sustained move under 27039 will signal the presence of sellers. The first downside target is the next pivot at 26909. This is followed closely by this week’s low at 26847.

Taking out 26847 could trigger an acceleration to the downside with the next major targets the main bottom at 26588 and the main 50% level at 26467.