E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Opening, but Cautious Trade Late

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market close, but the market is struggling to hold onto gains as traders booked profits from the major tech names and added to positions in the more beaten-down value stocks.

The blue chip average was supported by shares of JPMorgan Chase, which advanced 2.3%, but gains were limited by Microsoft Corp and Apple Inc, which fell by more than 0.4%.

Earlier in the session, the Dow was buoyed by a jump in shares of IBM that reported better-than-expected second-quarter earnings. Later in the session, Coca Cola, another Dow component, said its profit fell 33% in the second quarter, but the company expressed optimism on demand as lockdown measures associated with the coronavirus were lifted. Shares rose 2.4%.

At 20:05 GMT, September E-mini Dow Jones Industrial Average futures are trading 26728, up 95 or -0.36%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27063 will signal a resumption of the uptrend. A move through 25293 will change the main trend to down.

The minor trend is also up. A trade through 26330 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 27063 to 26330. The Dow straddled its pivot at 26697 most of the session.

The short-term range remains 27466 to 24409. Its retracement zone at 26298 to 25398 remains key support.

Short-Term Outlook

Basically, support has to hold or another secondary lower top will form at 27063. If this occurs then the chances of a near-term change in the main trend will increase.

However, this concern will go away on a sustained move over 27063 then 27466. If these moves take place then 25293 and 26330 will become important secondary higher bottoms.

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