E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Buyers Trying to Form Reversal Bottom

June E-mini Dow Jones Industrial Average futures are trading nearly flat late in the session on Friday after mounting a spectacular rebound rally shortly after the benchmark S&P 500 briefly moved into bear market territory.

Worries about surging inflation and rising interest rates drove the blue chip average sharply lower early in the session, but then bargain hunters stepped in to stop the slide and reverse the market higher.

Despite the strong comeback, the market is still poised to close lower for the week. Furthermore, the fundamental outlook remains bleak with some investors looking for an imminent recession.

At 20:00 GMT, the June E-mini Dow is at 31232, up 30 or +0.10%. The SPDR Dow Jones Industrial Average ETF (DIA) settled at $312.42, down $0.01 or -0.00%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 30585 will signal a resumption of the downtrend. A move through 32692 will change the main trend to up.

The minor range is 32692 to 30585. The nearest resistance is its pivot at 31639.

The short-term range is 34027 to 30585. Its retracement zone at 32306 to 32712 is the next target zone and potential resistance.

The intermediate resistance area is 33647 to 34369.

Short-Term Outlook

Trader reaction to 31202 is likely to determine the direction of the June E-mini Dow into the close on Friday and during Monday’s pre-market session.

Bullish Scenario

A sustained move over 31202 will indicate the buying is getting stronger. This could trigger a fast move into 31639. This level is a potential trigger point for an acceleration to the upside with 32306 the next key target.

Bearish Scenario

A sustained move under 31202 will signal the presence of sellers. This could trigger an intraday pullback into 31066. If this level fails, sellers could hit the market hard with 30585 the next major target.

Side Notes

Following the prolonged move down in terms of price and time, a close over 31202 will form a potentially bullish closing price reversal bottom. If confirmed on Monday, this could trigger the start of a 2 – 3 day counter-trend rally.