E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Stronger Over 36135, Weaker Under 35823

December E-mini Dow Jones Industrial Average futures are trading nearly flat on below average volume during the pre-market session. The blue chip average dipped 0.6% last week after October’s consumer price index (CPI) made its largest annual increase in more than three decades.

At 07:00 GMT, December E-mini Dow Jones Industrial Average futures are trading 35995, down 18 or -0.05%.

October’s CPI jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones. The index, which tracks a basket of consumer products, increased 0.9% on a month-over-month basis, also hotter than expected.

Treasury yields rose on the CPI news, as investors bet the Federal Reserve may be forced to raise interest rates sooner than expected to combat inflation.

This week, investors will be focused on Tuesday’s retail sales report. Additionally, Dow components Walmart and Home Depot will release results the same day.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 33984 will change the main trend to down. A move through 36446 will signal a resumption of the uptrend.

The minor trend is also up. A trade through 35823 will change the minor trend to down. This will shift momentum to the downside.

The first minor range is 36446 to 35823. Its 50% level or pivot at 36135 is potential resistance.

The second minor range is 35383 to 36446. Its 50% level at 35915 is potential support.

The third minor range is 33984 to 36446. If the minor trend changes to down then its 50% level at 35215 will become the next target.

The short-term range is 33383 to 36446. Its retracement zone at 34915 to 34553 is the last potential support before the main bottom at 33984.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 35915.

Bullish Scenario

A sustained move over 35915 will indicate the presence of buyers. The first upside target is 36135. This is a potential trigger point for an acceleration to the upside with 36446 the next target.

Bearish Scenario

A sustained move under 35915 will signal the presence of sellers. The first downside target is the minor bottom at 35823.

Momentum will shift to the downside if 35823 is taken out with strong volume. This could trigger an acceleration to the downside with the next targets a minor bottom at 35383, followed by a pivot at 35215.

Side Notes

The December E-mini Dow Jones Industrial Average posted a potentially bearish weekly closing price reversal top the week-ending November 12. Taking out 35823 will confirm the chart pattern. This could trigger the start of a 2 to 3 week sell-off with 34915 to 34553 the next target zone.