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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Lifted by Better-Than-Expected Earnings

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September E-mini Dow Jones Industrial Average futures are trading higher late in the session on Tuesday, helped as more companies reported better-than-expected earnings. The news is coming as a surprise to most investors who entered earnings season worried that higher inflation would put a major dent in the corporate bottom line.

At 18:54 GMT, September E-mini Dow Jones Industrial Average futures are at 31725, up 678 or +2.18%. The SPDR Dow Jones Industrial Average ETF (DIA) is trading $317.51, up $6.86 or +2.21%.

The E-mini Dow is being led higher by strong performances in Goldman Sachs Group, Nike Inc and Boeing Co. They are up 5.65%, 5.18% and 5.14%, respectively. Solid earnings are fueling the surge in Goldman Sachs.

Twenty-eight of 30 Dow components are trading higher with the exception of Johnson & Johnson and International Business Machines Corp. They are off 1.70% and 5.84%, respectively. IBM fell after the tech company lowered its forecast for cash flow. Johnson & Johnson cut its full-year revenue and profit guidance, blaming a stronger U.S. Dollar for its weak performance.

Daily September E-mini Dow Jones Industrial Average
Daily September E-mini Dow Jones Industrial Average

Short-Term Technical Analysis

The main trend is up according to the daily swing chart. A trade through 30109 will change the main trend to down. Taking out the next main top at 31867 will reaffirm the uptrend.

The intermediate range is 33255 to 29639. The E-mini Dow is currency testing its retracement zone at 31447 to 31874.

On the upside, the next major target zone is 32522 to 33202. On the downside, short-term support comes in at 30753 to 30490.

Short-Term Technical Forecast

Trader reaction to the retracement zone at 31447 to 31874 is likely to determine the direction of the September E-mini Dow into the close on Tuesday.

Bullish Scenario

Taking out the main top at 31867 will reaffirm the uptrend, while a strong move through the Fibonacci level at 31874 could trigger an acceleration to the upside with 32522 the next major target.

Bearish Scenario

A sustained move under 31874 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the 50% level at 31447. This price is a potential trigger point for an acceleration into the minor support zone at 30753 to 30490.

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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