September E-mini Dow Jones Industrial Average futures are trading flat to higher in the pre-market session early Tuesday as investors prepare for a slew of earnings reports from major U.S. corporations.
The blue chip average finished higher on Monday as investors monitored progress in government stimulus efforts along with rising U.S. COVID-19 cases and restrictions around the world.
After the bell on Monday, Senate Majority Leader Mitch McConnell unveiled the Republican coronavirus relief plan. The $1 trillion coronavirus aid proposal will now need to be negotiated with Democrats before enhanced unemployment benefits expire on Friday.
At 05:53 GMT, September E-mini Dow Jones Industrial Average futures are trading 26502, up 18 or +0.07%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 26232 will signal a resumption of the downtrend. The main trend will change to up on a move through the pair of main tops at 27057 and 27063.
The minor range is 27057 to 26232. Its retracement zone at 26645 to 26742 is the primary upside target. Since the main trend is down, we expect to see sellers on the first test of this area. They are going to try to form a secondary lower top.
The short-term range is 25293 to 27063. Its 50% level at 26178 is potential support.
The main range retracement zone is 26298 to 25938. This zone is controlling the near-term direction of the Dow.
Daily Swing Chart Technical Forecast
Trader reaction to 26645 to 26742 sets the tone on Tuesday. Look for the bearish tone to reestablish itself on a sustained move under 26645 and for a bullish tone to possibly develop over 26742.
A sustained move under 26645 will indicate the presence of sellers. This could trigger a break into a series of potential support levels at 26298, 26232 and 26178. Look for an acceleration into 25938 if 26178 fails as support.
Overtaking 26645 will be the first sign of strength, but a sustained move over 26742 could trigger an acceleration to the upside with the next target the pair of main tops at 27057 and 27063.
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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