E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 34132, Weak Under 33826

December E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session early Tuesday as investors attempt to claw back yesterday’s steep loss.

The blue chip average tumbled on Monday due to a confluence of concerns including the imminent Federal Reserve meeting, the lingering delta variant, potential economic disruption in China and the debt ceiling deadline, CNBC wrote.

At 06:36 GMT, December E-mini Dow Jones Industrial Average futures are at 34096, up 257 or +0.76%.

In the cash market on Monday, the Dow Jones Industrial Average plummeted 614 points, or 1.8%, for its biggest one-day drop since July 19.

Financial-related stocks were particularly weak with Goldman Sachs Group Inc down 3.41%. JPMorgan Chase & Co lost 2.99% and Travelers Companies Inc was off by 2.32%.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 33478 will signal a resumption of the downtrend. A move through 35383 will change the main trend to up. This is highly unlikely but there is room for a normal 50% to 61.8% retracement.

The minor trend is also down. It will change to up on a trade through 34826. This will also shift momentum to the upside.

The main range is 32835 to 35429. The E-mini Dow is currently trading inside its retracement zone at 34132 to 33826. Trader reaction to this zone is likely to determine the tone of the market the rest of the week.

The short-term range is 35383 to 33478. Its retracement zone at 33431 to 34655 is the next upside target area.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average early Tuesday is likely to be determined by trader reaction to 33826.

Bullish Scenario

A sustained move over the Fibonacci level at 33826 will indicate the presence of buyers. The first upside target is the 50% level at 34132.

Since the main trend is down, sellers are likely to come in on the first test of 34132. Overtaking this level will indicate the buying is getting stronger. If this generates enough upside momentum then look for a surge into the retracement zone at 34431 to 34655. Look for sellers to return on a test of this area.

Bearish Scenario

The inability to overcome 34132 will be the first sign of selling pressure. Taking out 33826 will indicate the selling pressure is getting stronger. This could trigger a retest of yesterday’s low at 33478. This price level is a potential trigger point for an acceleration to the downside with the June 21 main bottom at 32835 the next major downside target.

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

This article was originally posted on FX Empire

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