E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Big Decision on Test of 33476 – 33116

June E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening on Wednesday as massive selling in cryptocurrencies spilled over to the blue chip average.

Falling crude oil prices are weighing on Dow component Chevron Corp, which is down 2.778%. Boeing Co is off 2.329% and Caterpillar is down 2.272%.

Tech-related shares are following the NASDAQ lower with IBM off by 1.702%. Intel is down 1.198% and Apple Inc is off by 0.801%.

At 13:52 GMT, June E-mini Dow Jones Industrial Average futures are trading 33570, down 426 or -1.25%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 33200 will reaffirm the downtrend. A move through 34423 will change the main trend to up.

The short-term range is 35000 to 33200. Its retracement zone at 34100 to 34312 is resistance. This zone helped stop the buying on Tuesday, setting up the secondary lower top.

The minor range is 33200 to 34423. The Dow is currently trading on the weak side of its 50% level at 33812, making it resistance.

The main range is 31951 to 35000. Its retracement zone at 33476 to 33116 is the primary downside target. This zone stopped the selling at 33200 on May 13.  Watch for a technical bounce on the first test of this zone. If it fails, then look for the start of an acceleration to the downside.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the pivot at 33812.

Bearish Scenario

A sustained move under 33812 will indicate the presence of sellers. If this move continues to generate enough downside momentum then look for a break into the 50% level at 33476. If this fails then look for the selling to possibly extend into the main bottom at 33200.

Taking out 33200 will reaffirm the downtrend. This should lead to a quick test of the Fib level at 33116. Buyers could come in on the first test of this level, but if it fails then look for the start of an acceleration to the downside with 31951 the next near-term target.

Bullish Scenario

A sustained move over 33812 will signal the presence of buyers. This could lead to a labored rally with potential upside targets coming in at 34100, 34312 and 34423. Since the main trend is down, sellers could come in on a test of these levels. Taking out 34423 will change the trend to up.

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