E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Testing 33939 – 33694 RT Zone

September E-mini Dow Jones Industrial Average futures are trading lower on Monday , with economy-linked value and travel stocks taking a hit after a spike in global COVID-19 cases raised fresh concerns about slowing economic growth.

At 14:58 GMT, September E-mini Dow Jones Industrial Average futures are at 33790, down 774 or -2.24%.

Reuters is reporting that new U.S. COVID-19 cases surged 70% last week compared with the prior seven days to an average of 30,000 new infections a day, fueled by the Delta variant. Deaths rose 26% week-over-week to an average of 250 lives lost a day, mostly in unvaccinated patients.

In stock-related news, Dow components and rate-sensitive lenders JPMorgan & Co and Goldman Sachs Group Inc, are down about 2% each, tracking a drop in the benchmark 10-year Treasury yield to mid-February lows.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier today when sellers took out the last swing bottom at 34004.

The minor range is 34975 to 33743. Its retracement zone at 34359 to 34504 is potential resistance.

The short-term range is 32902 to 34975. The Dow is currently testing its retracement zone at 33939 to 33694. We could see a technical bounce following a test of this area.

The main range is 31842 to 34975. Its retracement zone at 33409 to 33039 is a major downside target. This is a value zone so aggressive buyers could show up on a test of this area.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the E-mini Dow into the close is likely to be determined by trader reaction to 33694.

Bearish Scenario

A sustained move under 33694 will indicate the selling is getting stronger. This could trigger a further break into the main 50% level at 33409. Watch for a technical bounce. If this level fails then look for the selling to possibly extend into the 61.8% level at 33039, followed by a main bottom at 32902.

Taking out 32902 could trigger an acceleration to the downside with 31842 the next likely target.

Bullish Scenario

A sustained move over 33694 will signal the presence of counter-trend buyers. Overtaking 33939 will indicate the buying is getting stronger. This could trigger an intraday short-covering rally into 34359 to 34504.