E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Stronger Over 32522, Weaker Under 32302

September E-mini Dow Jones Industrial Average futures are trading flat late in the session on Friday after recovering from a steep loss shortly after the release of stronger-than-expected U.S. Non-Farm Payrolls data.

The report is causing a little confusion for investors because it shows the economy is strong and not likely in a recession, which tends to be good for stocks. But it also likely means the Fed could go big with another 75 basis point rate hike at its September 21 meeting. Rising interest rates tend to weigh on stocks.

At 18:05 GMT, September E-mini Dow Jones Industrial Average futures are trading 32682, up 1 or +0.00%. This is up from an intraday low of 32431.

The labor market added 528,000 jobs in July, easily beating a Dow Jones estimate of a 258,000 increase. The Unemployment Rate ticked down to 3.5%, below the 3.6% estimate. Wage growth also rose more than estimated, up 0.5% for the month and 5.2% higher than a year ago, signaling that high inflation is likely still a problem.

In stock related news, JPMorgan Chase & Co is the biggest gainer, up 3.20%. This is followed by Chevron Corp, up 2.14% and Goldman Sachs Group is up 0.95%. Walt Disney is the biggest loser, down 1.40%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 32938 will signal a resumption of the uptrend. A move through 30109 will change the main trend to down.

The minor trend I also up. A trade through 32342 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 35405 to 29639. The market is currently testing its retracement zone at 32522 to 33202. Additional support is a minor pivot at 32302.

Daily Swing Chart Technical Forecast

Trader reaction to the main 50% level at 32522 is likely to determine the direction of the September E-mini Dow into the close on Friday.

Bullish Scenario

A sustained move over 32522 will signal the presence of buyers. If this move creates enough upside momentum then look for a late session move into the main top at 32938. Taking out this level could trigger a surge into the main top at 33255, followed by the main Fibonacci level at 33202.

Bearish Scenario

A sustained move under 32522 will indicate the presence of sellers. The first target is the minor bottom at 32342, followed by a minor pivot at 32302. This price is a potential trigger point for an acceleration to the downside.