E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis

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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trend Down; 26473 Next Major Target

James Hyerczyk

Mon, Sep 23, 2019, 9:08 AM

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. Sellers are driving the rise action after weak economic data out of Germany stoked worries about a global economic slowdown. Better-than-expected U.S. manufacturing data failed to ease investor tensions. Investors are also expressing concerns over the lack of progress in U.S.-China trade relations.

At 14:54 GMT, December E-mini Dow Jones Industrial Average futures are at 26855, down 39 or -0.14%.

The first wave of selling pressure was attributed to the drop in German manufacturing activity to its lowest level since the financial crisis. In the U.S., data from the manufacturing sector hit a five-month high in September, but this wasn’t strong enough to turn the Dow higher.

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 trend turned down on Friday when sellers took out the swing bottom at 26900. This down trend was confirmed earlier today. A trade through 27262 will change the main trend to up.

The minor range is 26706 to 27312. Its 50% level at 27009 is controlling the direction of the Dow today.

The major retracement zone at 26473 to 26195 is controlling the longer-term direction of the Dow.

The short-term retracement zone comes in at 26278 to 26034.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 26855, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to the pivot at 27009.

Bearish Scenario

A sustained move under 27009 will indicate the presence of sellers. This could trigger a sharp break into the minor bottom at 26706. If this level fails then look for the selling to possibly extend into the main Fibonacci level at 26473.