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December E-mini Dow Jones Industrial Average futures are trading sharply higher shortly after the cash market opening after President Trump provided some clarity regarding fiscal stimulus, following an announcement on Tuesday that sent stock prices sliding late in the session.

At 14:28 GMT, December E-mini Dow Jones Industrial Average futures are trading 28061, up 361 or +1.30%.

Late Tuesday, Trump broke off negotiations with Democrats on more economic aid in a tweet on Tuesday, and promised a major stimulus bill after he wins the November 3 election.

In other news, Dow component Boeing Co gained 1.8% after the Federal Aviation Administration issued a draft report on revised training procedures for the planemaker’s 737 MAX, a key milestone to the plane’s eventual ungrounding.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but today’s strong comeback rally has put the Dow in a position to change the main trend to up by taking out the 28251 main top. Meanwhile, a move through 26407 will signal a resumption of the downtrend.

The minor trend is up. A trade through 27109 will change the minor trend to down. This will also shift momentum to the downside.

On Tuesday, the Dow formed a closing price reversal top. A trade through 28232 will negate the chart pattern and signal a resumption of the uptrend. A move through 27531 will confirm the potentially bearish chart pattern. This could trigger the start of a 2 to 3 day correction.

The short-term range is 29050 to 26407. Its retracement zone at 27729 to 28040 is currently being straddled.

The new minor range is 26407 to 28232. Its retracement zone at 27320 to 27104 is the next potential downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Wednesday is likely to be determined by trader reaction to the Fibonacci level at 28040.

Bullish Scenario

A sustained move over 28040 will indicate the presence of buyers. This could trigger a rally into 28232, followed by 28251. Taking out the latter could trigger an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the next major target the September 3 main top at 29050.

 Bearish Scenario

A sustained move under 28040 will signal the presence of sellers. This could trigger a break into the 50% level at 27729. Buyers could step in on a pullback into this area, but if it fails, then look for the selling to possibly extend into the minor retracement zone at 27320 to 27104.