E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Watching 26685 – 26714 into Close

December E-mini Dow Jones Industrial Average futures are trading mixed late in the session on Thursday after posting a choppy, two-sided trade most of the session. The blue chip average was pressured early in the session as a surprise rise in weekly jobless claims signaled a slowdown in economic growth, but bargain-hunters stepped in to gobble-up cheap technology-related stocks to fuel a turnaround the market.

At 19:13 GMT, December E-mini Dow Jones Industrial Average futures are trading 26689, up 4 or +0.01%.

Dow constituents, considered a barometer of economic confidence, lagged the S&P 500 on Thursday as data showed 870,000 Americans applied for jobless benefits in the week-ended September 19, up from 866,000 in the previous week.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but the price action suggests momentum may be shifting to the upside.

A trade through 26407 will signal a resumption of the downtrend, but a close over 26685 will form a potentially bullish closing price reversal bottom. This won’t change the main trend to up, but it could signal the start of a 2 to 3 day counter-trend rally.

The main range is 24377 to 29050. The Dow is currently testing its retracement zone at 26714 to 26162. Trader reaction to this area could determine the near-term direction of the futures contract.

Short-Term Forecast

The direction of the December E-mini Dow Jones Industrial Average into the close will be determined by trader reaction to Wednesday’s close at 26685.

Bearish Scenario

A sustained move under 26685 will indicate the presence of sellers. This could lead to a late session retest of 26407, followed by the main Fibonacci level at 26162. This price is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over 26685 will signal the presence of buyers. Overcoming the 50% level at 26714 will indicate the buying is getting stronger, leading to a possible rally into the short-term Fibonacci level at 27027.