E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trading on Bullish Side of 35021 Pivot
September E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session on Monday as investors prepare for the start of the Jackson Hole Symposium at the end of the week.
Investors are eagerly awaiting a keynote speech from Federal Reserve Chairman Jerome Powell on August 27 in which he could reveal some clues on the Fed’s timeline for reducing its $120 billion a month bond-buying program.
At 08:33 GMT, September E-mini Dow Jones Industrial Average futures are trading 35170, up 112 or +0.32%.
Last week, the Fed triggered a setback in the stock market when the minutes of the Fed’s July meeting, released on Wednesday, showed officials largely expect to reduce their monthly bond buying this year.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 35547 will signal a resumption of the uptrend. A move through 34494 will change the main trend to down.
The short-term range is 35547 to 34494. The Dow is currently trading on the strong side of its 50% level at 35021, making it support.
The main range is 33623 to 35547. Its retracement zone at 34585 to 34358 is support. It stopped the selling at 34494 on August 19. This zone is controlling the near-term direction of the Dow futures contract.
Daily Swing Chart Technical Forecast
The direction of the September E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 35021.
A sustained move over 35021 will indicate the presence of buyers. If this move can generate enough upside momentum with strong buying volume then look for the rally to possibly extend into the record high at 35547 over the short-run.
A sustained move under 35021 will signal the presence of sellers. This will be an early sign that a potentially bearish secondary lower top is forming. The first downside target is the minor pivot at 34856.50. Followed by the main 50% level at 34585, the main bottom at 34494 and the main Fibonacci level at 34358.