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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Decision Time at 27400 – 27741

James Hyerczyk
·2 min read

December E-mini Dow Jones Industrial Average future soared on Tuesday as investors bet that a clear winner would emerge from the U.S. presidential election and a delayed, or contested, result would be avoided.

Heading into Tuesday’s vote, former Vice President Joe Biden held a lead in national polling over President Donald Trump. Biden earned 52% of support from registered voters compared to 42% for the president, according to an NBC News/Wall Street Journal poll from Sunday. In swing states, where the election will be decided, polling averages are tighter than the national polls.

At 20:14 GMT, December E-mini Dow Jones Industrial Average futures are trading 3349.25, up 48.75 or +1.48%.

Components Walgreens Boots Alliance and JPMorgan Chase both gained more than 4% to lead the blue-chip Dow higher.

“A declared winner would certainly be better for these markets, agnostic of who it is,” said Art Hogan, chief market strategist at National Securities.

“If we wake up tomorrow and we don’t have a clear winner, that shouldn’t surprise the market. But if we’re talking about this in the middle of next week and about court cases and recounts, that’s going to be the worst-case scenario.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the nearest main bottom at 25953 will reaffirm the downtrend. The main trend will change to up on a move through 28846.

The minor trend is also down. Taking out 28392 will change the minor trend to up. This will shift momentum to the upside.

The main range is 24377 to 29050. Its retracement zone at 26714 to 26162 is support.

The minor range is 28846 to 25953. Its retracement zone at 27400 to 27741 was the primary upside target. This area was tested earlier on Tuesday when the market rallied to 27534.

Short-Term Outlook

It’s decision time for investors.

The trend is down so sellers are going to defend the trend by showing up on a test of 27400 – 27741, or buyers are going to overtake this zone and attempt to retest the all-time high at 29050.

It’s that simple.

Sellers showed up on the first test of the zone on Tuesday and stopped the rally at 27534. This indicates that they are aware of it.

Buyers are going to have to decide if they want to play for a dip back to 26714 – 26162 or chase the market higher on a breakout over 27741.

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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