E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Upside Momentum Can Build Over 33202

A government report showing slower-than-expected headline and core inflation in July led traders to reduce their bets on the Federal Reserve raising interest rates for a third consecutive time by a whopping 75 basis points at its meeting on September 21. As a result, September E-mini Dow Jones Industrial Average futures are trading sharply higher shortly after the cash market opened on Wednesday.

September E-mini Dow Jones Industrial Average futures are now trading at 33261, up 524 or +1.60% as of 14:24 GMT. The SPDR Dow Jones Industrial Average ETF (DIA), up $4.76 or 1.45%, is now trading at $332.67.

Demand for riskier assets is fueled by inflation that is softer than anticipated.

Due to falling gasoline costs, consumer inflation in the United States did not increase in July compared to June, marking the smallest monthly inflation in more than two years.

The probability of a 75-basis-point hike in fund rates at the U.S. Federal Reserve's next meeting in September has dropped from 67.5% to 37.5% as a result of the weak inflation report.

The strongest performance on Wednesday is coming from stocks that are susceptible to falling interest rates. Goldman Sachs Group has increased by 3.13%. JPMorgan Chase is up 2.49%, while American Express is up 2.62%.

Chevron Corp., which is down 0.69% due to decreased crude oil prices, is the only company that loses out in this category.

Swing Chart Technical Analysis for the Day

The daily swing chart indicates that the overall trend is upward. The uptrend was confirmed by the trade through the last primary top at 33255. Passing through 32342 will turn the general trend downward.

Smaller trend is similarly upward. The little trend will turn downward if a deal is made through 32662. The downward momentum will change as a result.

35405 to 29639 is the primary range. The market is presently attempting to break above the 33202 level of its retracement zone. Support for the downside is a 50% level at 32522.

Swing chart technical forecast for the day

The path of the September E-mini Dow Jones Industrial Average into Wednesday's closing will depend on how traders respond to the Fibonacci level at 33202.

Positive Scenario

The presence of buyers will be shown by a prolonged advance over 33202. It will be clear that the purchasing is picking up steam if there is a sustained rise over the key high at 33255. Look for a short-term bounce into the May 5 peak at 34011 if this creates sufficient upward momentum.

Grizzly Situation

The presence of sellers will be shown by a persistent move below 33202. Look for a break through the minor pivot at 32805 if this creates sufficient downward momentum. The selling is expected to continue until the 50% barrier at 32522 if this fails.