E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Upside Target at 34408-34482 in Play

September E-mini Dow Jones Industrial Average futures are trading flat in overnight trading on Monday after bucking the trend of the S&P 500 and NASDAQ Composite in the previous session and finishing lower. The blue chip Dow was under pressure as investors poured back into growth stocks as bond yields moved lower. The 10-year Treasury rate hit a three-month low last Friday and hovered around 1.5% on Monday.

At 03:08 GMT, September E-mini Dow Jones Industrial Average futures are at 34282, up 7 or +0.02%.

The Federal Reserve’s two-day policy meeting starts on Tuesday, and it’s a focal point for the markets this week. The central bank is not expected to take any action. However, commentary on interest rates, inflation and the economy could drive market moves. Traders will listen closely for comments on inflation and the Fed’s eventual tapering plans.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 34095 will signal a resumption of the downtrend. A move through 34711 will change the main trend to up.

The minor trend is also down. A trade through 34625 will change the minor trend to up. This will shift momentum to the upside.

The main range is 34883 to 33131. Its 50% level at 34007 is potential support.

The short-term range is 33131 to 34721. Its retracement zone at 33926 to 33738 is another potential support zone.

The minor range is 34721 to 34095. Its retracement zone at 34408 to 34482 is the nearest upside target. Sellers could come in on a test of this area. Overcoming it, could trigger an acceleration to the upside.

Daily Swing Chart Technical Forecast

The direction of the September E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to 34274.

Bearish Scenario

A sustained move under 34274 will indicate the presence of sellers. If this move creates enough downside momentum then look for a retest of 34095.

Taking out 34095 will indicate the selling is getting stronger. This could lead to a labored break into a series of retracement levels at 34007, 33926 and 33738. Look for aggressive counter-trend buyers to come in on a test of these levels.

Bullish Scenario

A sustained move over 34274 will signal the presence of buyer. This could trigger a surge into 34408 to 34482. Since the trend is down, sellers are likely to come in on a test of this area. They will be trying to form a potentially bearish secondary lower top.