E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 35908, Weak Under 35679

December E-mini Dow Jones Industrial Average futures are trading higher late Tuesday on the strength of bank and energy stocks. While the threat of higher interest rates weighed on high-flying technical shares for a second session, bank stocks rose in response to higher Treasury yields. Energy stocks were boosted by a sharp rise in crude oil prices.

At 21:25 GMT, December E-mini Dow Jones Industrial Average futures are trading 35730, up 159 or +0.45%.

The banking sector was led higher by shares of Goldman Sachs and JPMorgan, which rose 2.57% and 2.39%, respectively. Meanwhile in the energy sector, oil giant Chevron Corp gained 2.1%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 35370 will signal a resumption of the downtrend. A move through 36238 will change the main trend to up.

The minor trend is also down. A trade through 35988 will change the minor trend to up. This will also shift momentum to the upside.

At the close, the E-mini Dow is straddling a minor pivot at 35769, making it potential support early Wednesday. A pivot at 35908 is the next upside target and potential resistance.

On the downside, potential support is a 50% level at 35315 and a retracement zone at 34915 – 34553. This zone represents value and should attract new buyers if tested.

Short-Term Outlook

Tuesday’s closing price reversal bottom suggests momentum may be getting ready to shift to the upside. A trade through 35793 early Wednesday will confirm the chart pattern. This will shift momentum to the upside and could drive the market into 35908, followed closely by 35988.

A trade through 35988 will change the minor trend to up. This will confirm the shift in momentum and could create enough upside momentum to challenge a pair of main tops at 36238 and 36446.

Trading on the weak side of the pivot at 35679 will indicate the presence of sellers early Wednesday. If this creates enough downside momentum then look for the selling to possibly extend into 35370.