E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weakness Fueled by Dismal Economic Data

September E-mini Dow Jones Industrial Average futures are down sharply late in the session on Tuesday after sellers came in following the release of worse than expected consumer confidence data.

The price action suggests investors are still tentative about buying strength due to uncertainty over whether a bottom has been formed. Furthermore, interest rate hikes and recession fears are expected to continue to dominate the trade.

At 19:27 GMT, September E-mini Dow Jones Industrial Average futures are trading 30977, down 444 or -1.41%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $309.79, down $4.57 or -1.45%.

Blue Chip Shares Tumble as US Consumer Confidence Erodes

The blue chip average reversed to the downside after disappointing economic data. The consumer confidence index fell to a reading of 98.7, down from 103.2 in May and missing a Dow Jones estimate of 100, according to The Conference Board. The weak data came as fears of a recession have increased lately as the Federal Reserve tries to combat surging inflation with aggressive rate hikes.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 33255 will change the main trend to up. A move through 29639 will signal a resumption of the downtrend.

The minor trend is also down. The trend turned down earlier in the session when sellers took out 31331. A trade through 31867 will change the minor trend to up.

The short-term range is 33255 to 29639. The market is currently trading on the weak side of its retracement zone at 31447 to 31874, making it resistance.

The minor range is 29639 to 31867. Its 50% level at 30253 is the nearest downside target and support.

Daily Swing Chart Technical Forecast

Trader reaction to 31421 is likely to determine the direction of the September E-mini Dow into the close on Tuesday.

Bearish Scenario

A sustained move under 31421 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor pivot at 30253.

Bullish Scenario

A sustained move over 31421 will signal the presence of buyers. Overtaking the 50% level at 31447 will indicate the intraday buying is getting stronger. This could trigger a surge into the resistance cluster at 31867 – 31874. Taking out the latter could trigger an acceleration to the upside with 32599 the next major target.