Weakness Fueled by Dismal Economic Data

The announcement of worse than anticipated consumer confidence data on Tuesday caused sellers to enter the market, which resulted in a steep decline in the September E-mini Dow Jones Industrial Average futures late in the session.

The price movement indicates that investors are still hesitant to purchase strength because they are unsure if a bottom has occurred. Furthermore, it is anticipated that concerns about a recession and rising interest rates would continue to rule the market.

September E-mini Dow Jones Industrial Average futures are now trading at 30977, down 444 or -1.41 percent, at 19:27 GMT. The SPDR Dow Jones Industrial Average ETF (DIA), which is down $4.57 or 1.45%, is now trading at $309.79.

Shares of Blue Chip Companies Fall as US Consumer Confidence Declines

Following poor economic statistics, the blue chip average turned to the fall. The Conference Board said that the consumer confidence index dropped to a score of 98.7, down from 103.2 in May and below the 100 Dow Jones projection. The disappointing statistics comes as recession worries have grown recently as the Federal Reserve aggressively raises interest rates to battle growing inflation.

Swing Chart Technical Analysis for the Day

The daily swing chart indicates that the primary trend is downward. The major trend will switch to up if a transaction is made through 33255. A move through 29639 will indicate that the downturn has resumed.

Even the slightest trend is negative. Earlier in the day, sellers pulled away 31331, and the trend swung downward. The minor trend will turn upward if a deal is made through 3186.

The range for the near future is 33255 to 29639 The market is now experiencing resistance as it trades on the weaker side of its retracement range, which is 31447 to 31874.

29639 to 31867 is the minor range. The closest support and objective on the downside is at its 50 percent level, which is 30253.

Swing chart technical forecast for the day

The response of traders to 31421 will probably influence the movement of the September E-mini Dow into Tuesday's closing.

Grizzly Situation

Continual movement below 31421 will signal the existence of sellers. Look for the selling to potentially continue towards the minor pivot at 30253 if this move generates enough downward momentum.

Positive Scenario

The presence of buyers will be shown by a prolonged advance over 31421. A breach of the 50% mark at 31447 will signal a strengthening of intraday buying. This may spark a rush into the resistance band between 31867 and 31874. In the event that the latter is taken out, the following significant objective, 32599, might be reached.