E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Closed on Weak Side of Retracement Zone
December E-mini Dow Jones Industrial Average futures tumbled on Thursday as investors fretted over economic growth and a possible government shutdown. A batch of mixed economic data spurred large swings in the blue chip market, as investors weighed a slight upward revision in second-quarter growth against a bigger-than-expected rise in weekly jobless claims.
On Thursday, December E-mini Dow Jones Industrial Average futures settled at 33722, down 543 or -1.61%.
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Losses in major financial stocks saw the Dow Jones largely lag its peers, as the rise in jobless claims cast some doubt over the Federal Reserve’s plan to tighten policy.
In a hearing before the U.S. House Financial Services Committee on Thursday, Fed Chair Jerome Powell said the central bank finds itself in a difficult situation in regards to tension between inflation and employment.
Uncertainty from the Fed is likely weighing on investor confidence.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart a trade through 33478 will reaffirm the downtrend. A move through 34934 will change the main trend to up.
The main range is 32835 to 35429. On Thursday, the E-mini Dow closed on the weak side of its retracement zone at 33826 to 34132, making it resistance.
The short-term range is 35383 to 33478. Its retracement zone at 34431 to 34655 is additional resistance.
Daily Swing Chart Technical Forecast
The direction of the December E-mini Dow Jones Industrial Average on Friday will be determined by trader reaction to 33826.
Bearish Scenario
A sustained move under 33826 will indicate the presence of sellers. If this creates enough downside momentum then look for the weakness to possibly extend into the nearest main bottom at 33478.
The main bottom is a potential trigger point for an acceleration into the June 21 main bottom at 32835.
Bullish Scenario
A sustained move over 33826 will signal the presence of buyers. If this move creates enough upside momentum then look for a potential surge into 34132. Overtaking this level could trigger an acceleration into 33431 – 34655.