E-mini Dow in Position to Challenge Key Fib Level at 34942

June E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market close on Monday. Although the blue chip average is up for the session, it is underperforming the benchmark S&P 500 Index and the technology-driven NASDAQ Composite.

At 20:19 GMT, June E-mini Dow Jones Industrial Average futures are trading 34826, up 108 or +0.31%. The SPDR Dow Jones Industrial Average ETF (DIA) settled at $349.18, up $1.17 or +0.34%.

All three indices were up for the session, but the S&P 500 Index and NASDAQ Composite leaped out in front because of their heavy exposure to technology stocks. Tech shares, which were beat up in the first quarter on interest rate hike fears, rose the most, led by a 27% jump in shares of Twitter.

Leading the Dow higher were components Apple Inc, Intel Corp and Microsoft Corp, which were up 2.37%, 2.27% and 1.79%, respectively.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 35281 will signal a resumption of the uptrend. A move through 34214 will change the main trend to down.

The main range is 36708 to 32086. The E-mini Dow is currently trading inside its retracement zone at 34397 to 34942. This zone is controlling the near-term direction of the average.

The intermediate range is 35649 to 32086. Its retracement zone at 34288 to 33868 is another potential support area.

Combining the two retracement zones creates a key support cluster area at 34397 to 34288. This zone has been propping up the market since March 17.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average into the close on Monday is likely to be determined by trader reaction to 34859.

Bullish Scenario

A sustained move over 34859 will indicate the presence of buyers. This could lead to a quick test of the main Fibonacci level at 34942.

Overcoming 34942 will indicate the buying is getting stronger. This could trigger an acceleration into the main top at 35281.

Bearish Scenario

A sustained move under 34859 will signal the presence of sellers. If this creates enough downside momentum then look for a retest of the minor bottom at 34437, followed by the support cluster at 34397 to 34288.