December E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening after giving back earlier gains. Traders are saying the blue chip Dow is easing from record highs set earlier in the day on worries about the prospects of new fiscal stimulus.
The major averages gave back most of their gains after Senate Majority Leader Mitch McConnell told Politico that Republicans and Democrats were â€œstill looking for a way forwardâ€ on additional fiscal aid.
Those remarks came from Treasury Secretary Steven Mnuchin pitched Tuesday a $916 billion stimulus package to House Speaker Nancy Pelosi.
At 15:23 GMT, December E-mini Dow Jones Industrial Average futures are trading 30176, down 1 or 0.00%.
In other news, investors turned a little jittery shortly before the cash market open after the U.K.â€™s National Health Services (NHS) warned people with â€œsignificantâ€ allergic reaction not to get Pfizerâ€™s new coronavirus vaccine â€“ after two people needed treatment after being given the vaccine on Tuesday.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out Mondayâ€™s high. However, there are signs that a shift in momentum may be taking place.
A trade through the intraday high at 30309 will signal a resumption of the uptrend. A move through 29428 will change the main trend to down.
The minor trend is also up. A trade through 29852 will change the minor trend to down. This will also shift momentum to the downside.
The early price action indicates the market may be forming a potentially bearish closing price reversal top. This wonâ€™t change the trend, but it will indicate the selling is greater than the buying at current price levels.
The minor range is 29428 to 30309. Its 50% level at 29869 is the first downside target.
The second minor range is 28328 to 30309. Its 50% level at 29319 is another potential downside target.
Daily Swing Chart Technical Forecast
The direction of the December E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to 30170.
A sustained move over 30170 will indicate the presence of buyers. Taking out 30309 will signal a resumption of the uptrend. This could trigger an acceleration to the upside if the buying volume is strong enough.
A sustained move under 30170 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 29869, followed closely by 29852.
If 29852 fails then watch for an acceleration to the downside with potential targets 29589, 29428 and 29319.
Look out to the downside if 29319 is taken out with above average selling volume.