E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 34842 Pivot Sets Tone

September E-mini Dow Jones Industrial Average futures are trading steady to lower during the pre-market session as investors square positions ahead of today’s U.S. Non-Farm Payrolls report, due to be released at 12:30 GMT.

The jobs report has been called “highly anticipated” which could mean it’s been overhyped meaning the stock market may show little reaction to it. Instead investors may take the weekend to digest the numbers before making their move next week. The key to trading this report is to avoid getting caught reading the headlines. Let the U.S. Treasury yields be your guide.

At 08:39 GMT, September E-mini Dow Jones Industrial Average futures are trading 34930, down 13 or -0.04%.

Economists expect the economy to have added 845,000 jobs in July, according to estimates from Dow Jones. However the broad range of targets – from 350,000 on the low end to 1.2 million at the top – show the uncertainty that’s currently in the market.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since Monday’s potentially bearish closing price reversal top.

A trade through 35082 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 33623 will change the main trend to down.

The minor trend is down. This confirms the shift in momentum. A trade through 34602 will indicate the selling pressure is getting stronger.

The minor range is 35082 to 34602. The E-mini Dow is currently trading on the strong side of its 50% level at 34842.

The short-term range is 33623 to 35082. Taking out 34602 could trigger an acceleration into its retracement zone at 34353 to 34180.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to 34842.

Bullish Scenario

A sustained move over 34842 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible surge into 35082. Taking out this level could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 34842 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into this week’s low at 34602.

Taking out 34602 will indicate the selling pressure is getting stronger with 34353 to 34180 the next likely downside target zone. Since the main trend is up, buyers could come in on a test of this area.

For a look at all of today’s economic events, check out our economic calendar.