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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Sellers Targeting Major Fib Support at 25107

James Hyerczyk

September E-mini Dow Jones Industrial Average futures are trading sharply lower as investors dumped stocks due to worries about the increasing number of newly confirmed coronavirus cases. The fear of a second wave of coronavirus cases is raising concern about the economic reopening and recovery.

A CNBC analysis of Johns Hopkins University data found the U.S. 7-day average of coronavirus cases surged more than 30% from a week ago after the total number of cases grew by more than 31,000 on Monday.

“We’re going to eclipse the totals in April, so we’ll eclipse 37,000 diagnosed infections a day,” former Food and Drug Administration Commissioner Dr. Scott Gottlieb told CNBC’s “Squawk Box.”  “ But in April we were only diagnosing 1 in 10 in 20 infections, so those 37,000 infections represented probably half a million infections at the peak.”

At 14:51 GMT, September E-mini Dow Jones Industrial Average futures are trading 25525, down 495.

All 30 Dow Jones Industrial Average stocks are under pressure. In the financial sector, American Express is trading $96.89, down $2.49 or -2.51%. Goldman Sachs is at $199.91, down $4.96 or -2.42% and JPMorgan Chase is trading $95.85, down $2.08 or -2.12%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending higher. The main trend will change to down on a trade through 24409. A move through 27466 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the downside momentum. A trade through 25230 will indicate the selling is getting stronger. A move through 26294 will change the minor trend to up.

The minor range is 27466 to 24409. Its 50% level or pivot is 25938 is controlling the market’s direction today.

The main retracement zone is 25107 to 23760. This zone is potential support. It’s also controlling the longer-term direction of the Dow.

The short-term range is 22640 to 27466. Its retracement zone at 25053 to 24484 is another downside target. This zone falls inside the main retracement zone.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average futures the rest of the session on Wednesday is likely to be determined by trader reaction to 25938.

Bearish Scenario

A sustained move under 25938 will indicate the presence of sellers. The first downside target is the minor bottom at 25230, followed by the main Fibonacci level at 25107 and the short-term 50% level at 25053. The latter is a potential trigger point for an acceleration into 24484 to 24409.

Bullish Scenario

A sustained move over 25938 will signal the return of buyers. This could trigger a rally into 26294. Taking out this level could trigger an acceleration into 26658.

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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