E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 28520 Set the Tone

September E-mini Dow Jones Industrial Average futures are trading higher late in the session on Tuesday, but still struggling to overcome yesterday’s closing price reversal top. A trade through this level will resume the uptrend and continue to drive the momentum, putting the blue chip average on a path to challenge the all-time high.

At 19:40 GMT, September E-mini Dow Jones Industrial Average futures are trading 28575, up 159 or +0.56%.

The Dow is being supported by strong performances in components Walmart and Apple, as well as stronger-than-expected manufacturing data, but gains are being limited by its lack of exposure to technology stocks, which are soaring.

Walmart Inc rose 2.6% after the retail giant unveiled the perks of its new loyalty program, Walmart Plus, which will grant subscribers unlimited free delivery, fuel discounts and no checkout lines.

Apple Inc gained 1.7%, rising for the second straight day after its stock split took effect, as a report said the iPhone maker had asked suppliers to make at least 75 million 5G iPhones for later this year.

Fundamentally, ISM data showed U.S. factory activity expanded for the third straight month to a reading of 56.0 in August, the highest since January 2019.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside with the formation of a closing price reversal top and its subsequent confirmation earlier on Tuesday.

A trade through 28783 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through the nearest swing bottom at 25881.

The minor trend is also up. A trade through 27392 will change the minor trend to down. This will confirm the shift in momentum.

The minor range is 27392 to 28783. Its 50% level at 28088 is support.

The main range is 25881 to 28783. If the minor trend changes to down then its retracement zone at 27332 to 26990 will become the primary downside target.

Short-Term Outlook

On Tuesday, the September E-mini Dow Jones Industrial Average confirmed Monday’s closing price reversal top, but the follow-through to the downside was not very impressive. This led to an intraday reversal to the upside and the test of a minor pivot at 28520. Trader reaction to this level could set the tone of the Dow the rest of the week.

A sustained move over 28520 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible surge into 28783. This is a potential trigger point for an acceleration to the upside.

The inability to overcome 28520 will signal the presence of sellers. This could trigger a break into the minor 50% level at 28088.

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