E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 35429, Weak Under 35383

December E-mini Dow Jones Industrial Average futures are inching lower in overnight trading Sunday after having scored its third positive week in a row while notching another record high. Some of the biggest technology companies are slated to report earnings this week including Dow components Microsoft and Apple. Additionally, a third of the Dow companies also is set to release quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.

At 01:58 GMT, December E-mini Dow Jones Industrial Average futures are trading 35520, down 37 or -0.10%. The blue-chip Dow gained more than 1% last week and closed Friday at a record.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35645 early Monday will signal a resumption of the uptrend.

The main trend will change to down on a trade through 33984. This is highly unlikely, but the E-mini Dow is up eight sessions from its last main bottom, which puts it inside the window of time for a potentially bearish closing price reversal top.

The formation of this chart pattern won’t change the trend to down, but if confirmed, it could lead to the start of a 2 to 3 day correction.

The minor range is 33984 to 35645. Its retracement zone at 34815 to 34619 is the first potential downside target.

The short-term range is 33383 to 35645. Its retracement zone at 34514 to 34247 is the primary downside target and value area.

With the main trend up, look for buyers to return on a test of the retracement zones.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average early Monday is likely to be determined by the former main top at 35429.

Bullish Scenario

A sustained move over 35429 will indicate the presence of buyers. Taking out the record high at 35645 will indicate the buying is getting stronger. Since there is no resistance, a move through this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 35429 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possible extend into the first retracement zone at 34815 to 34619 over the near-term.