E-mini Dow Jones Industrial Average (YM) Futures Analysis – Too Much Resistance to Overcome; Ready to Test Support

June E-mini Dow Jones Industrial Average futures are trading lower at the mid-session. Buyers failed for a second day to make a new high for the week, giving investors an excuse to take profits and play for a better entry price.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24827 will signal a resumption of the uptrend.

The market isn’t in any danger of turning the main trend to down, but there is room for a correction. Most of the selling today is related to profit-taking and position-squaring in response to rising U.S. Treasury yields.

Buyers face key retracement level resistance at 24867 and 24923. The latter is also a trigger point for an acceleration to the upside with plenty of room until the next resistance.

On the downside, potential support is 24684, 24569 and 24477.

The daily chart begins to open up to the downside under 24477 with 24157 the next likely target.

The new short-term range is 23306 to 24827. If the sell-off gains traction then its retracement level at 24067 to 23887 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the Dow today will be determined by trader reaction to the Fibonacci level at 24684.

A sustained move under 24684 will signal the presence of sellers. This could lead to a test of 24579 and 24477.

Look out to the downside if 24477 fails to hold.

Holding above 24684 will indicate the presence of buyers. This could lead to a retest of 24827 then 24867 and 24923.

The trigger point for a huge spike to the upside is 24923.

Don’t read too much into today’s weakness. It looks like normal profit-taking after a strong rally.