E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 34862 Pivot Sets Tone

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the mid-session on Wednesday as investors shrug off earnings reports ahead of the Federal Reserve’s monetary policy statement at 18:00 GMT.

Investors are eager to get an update on the central bank’s plans to start trimming its bond purchases, the first major step in tightening policy. Many Fed watchers expect that the spreading coronavirus delta variant will make the central bank sound more cautious on its economic outlook.

At 15:09 GMT, September E-mini Dow Jones Industrial Average futures are trading 34900, down 53 or -0.15%.

In stock related news, Dow component Boeing shares climbed about 5% after the manufacturer posted its first profit since the third quarter of 2019 thanks to a rebound in aircraft deliveries.

Other tech-related components were mixed. Apple shares dipped 0.4% after CEO Tim Cook warned that silicon “supply constraints” will affect sales of the iPhone as well as the iPad. The company did beat top- and bottom-line estimates and said its iPhone sales surged 50% year over year.

On the other hand, Microsoft saw its shares rise 1% after reporting an earnings beat despite a dip in revenue from its Windows division.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35072 will signal a resumption of the uptrend. A move through 33623 will change the main trend to down.

The minor trend is also up. A trade through 34652 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 34652 to 35072. The Dow is currently straddling its pivot at 34862.

The short-term range is 33623 to 35072. If the minor trend changes to down then look for the selling to possibly extend into its retracement zone at 34348 to 34177.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the pivot at 34862.

Bullish Scenario

A sustained move over 34862 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the record high at 35072.

Bearish Scenario

A sustained move under 34862 will signal the presence of sellers. This move could create enough downside momentum to challenge the minor bottom at 34652.

Taking out 34652 will change the minor trend to down. This could trigger an acceleration to the downside with the next target zone the short-term retracement area at 34348 to 34177.