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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weak Under 34553, Strong Over 34641

By:
James Hyerczyk
Updated: Nov 30, 2021, 09:23 UTC

The direction of the E-mini Dow Jones Industrial Average early Tuesday is likely to be determined by trader reaction to 34553 and 34641.

E-minii Dow Jones Industrial Average

In this article:

December E-mini Dow Jones Industrial Average futures are down early Tuesday, erasing all of yesterday’s gains and trading below last Friday’s low. Following Monday’s rebound rally, bearish traders appear to be back in control as they reassess risks associated with the new omicron COVID-19 variant.

At 08:58 GMT, December E-mini Dow Jones Industrial Average futures are trading 34607, down 470 or -1.34%.

The blue chip average was propped up on Monday after President Joe Biden assured investors the economy would not be shut down should the variant reach the United States. However, those gains were erased early Tuesday after Moderna CEO Stephane Bancel told the Financial Times that he expects existing vaccines to be less effective against the new variant. Bancel told CNBC on Monday that it could take months to develop and ship an omicron specific vaccine.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend resumed when sellers took out last week’s low at 34626. A move through the next swing bottom at 33984 will reaffirm the downtrend.

The main trend will change to up on a trade through 36238. This is highly unlikely, but due to the prolonged move down in terms of price and time, today’s session begins with the E-mini Dow inside the window of time for a potentially bullish closing price reversal bottom.

The E-mini Dow is currently straddling a price cluster at 34641 to 34553. Trader reaction to this area could determine the market’s direction on Tuesday.

On the downside, the nearest support is another Fibonacci level at 34214. On the upside, a pair of 50% levels at 34915 and 35215 is resistance. The latter stopped the buying on Monday.

Daily Swing Chart Technical Forecast

The direction of the E-mini Dow Jones Industrial Average early Tuesday is likely to be determined by trader reaction to 34553 and 34641.

Bearish Scenario

A sustained move under 34553 will indicate the presence of sellers. If this move creates enough downside momentum then look for a break into 34214. If this fails then look for the selling to possibly extend into the main bottom at 33984.

The main bottom at 33984 is a potential trigger point for an acceleration to the downside with 33383 the next major target.

Bullish Scenario

A sustained move over 34641 will signal the presence of buyers. This could trigger a short-covering rally into 34915.

Since the main trend is down, sellers could come in on the first test of 34915. Overtaking it, however, could extend the short-covering into the pivot at 35215. This is a potential trigger point for an acceleration to the upside.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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