E-mini Dow Jones Industrial Average (YM) Futures Analysis – Needs to Hold Above Major Retracement Zone to Extend Rally

September E-mini Dow Jones Industrial futures closed higher last week after hitting its highest level since the week-ending March 2. The rally was fueled by positive earnings reports, low exposure to technology stocks and the softening of trade tensions between the United States and the European Union.

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26627 will reaffirm the uptrend.

The minor trend is also up. This is helping to generate short-term upside momentum. Taking out 25572 will indicate the buying is getting stronger. This could trigger a test of the next minor top at 25868.

The main range is 26672 to 23178. Its retracement zone at 25337 to 24925 is controlling the longer-term direction of the index. Closing above this zone last week is helping to support the upside bias.

The short-term range is 23978 to 25572. If sellers take control then we could see a pullback into its retracement zone at 24775 to 24587. Since the main trend is up, buyers could come in on a test of this zone.

Weekly Swing Chart Technical Forecast

Based on last week’s price action and the close at 25414, the direction of the September E-mini S&P 500 Index this week is likely to be determined by trader reaction to the main Fibonacci level at 25337.

A sustained move over 25337 will indicate the presence of buyers. If this generates enough upside momentum then look for a test of last week’s high at 25572. Taking out this level could trigger an acceleration into the next minor top at 25868. This is another trigger point for an acceleration to the upside with 26672 the next major target.

A sustained move under 25337 will signal the presence of sellers. This is a potential trigger point for an acceleration into a pair of 50% levels at 24925 and 24775. Since the main trend is up, buyers may show up on a test of these levels. If they fail to hold then look for the selling to extend into 24587. This is another trigger point for an acceleration to the downside with 23978 the next major target.