E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Closed on Strong Side of 33858 Pivot

June E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market session on Wednesday. The move helped the blue-chip average regain more than half of this week’s earlier losses.

Helping to boost the Dow were components International Business Machine Corp and Dow Inc, which rose 3.90% and 3.745% respectively. Nike Inc and Caterpillar Inc rose over 2.00%. Losses were limited to just four stocks out of 30, including Amgen Inc, McDonald’s Corp, Verizon Communication Inc and Procter & Gamble Co. All lost less than 1.00%.

At 20:25 GMT, June E-mini Dow Jones Industrial Average futures are trading 33986, up 283 or +0.84%.

With the first-quarter earnings season picking up pace, analysts expect profit for S&P 500 companies to jump 31.9% from a year earlier, according to Refinitiv IBES data.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 34144 will signal a resumption of the uptrend. The main trend changes to down on a move through 31951.

The minor trend is down. The minor trend changes to up on a trade through 34066. A move through 33572 will indicate the selling pressure is getting stronger. A trade through 34066 will also make 33572 a new minor bottom.

The minor range is 34144 to 33572. The Dow is currently trading on the strong side of its 50% level at 33858.

The second minor range is 33157 to 34144. Its 50% level at 33651 is support. This level stopped the selling on Tuesday and Wednesday.

The short-term range is 31951 to 34144. Its 50% level at 33048 is the next major downside target.

Daily Swing Chart Technical Forecast

The short-term direction of the June E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the pivot at 33858.

Bullish Scenario

A sustained move over 33858 will indicate the presence of buyers. The first upside target is the minor top at 34066. Taking out this level could trigger a surge into the record high at 34144. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 33858 will signal the presence of sellers. This could trigger a quick break into 33651, followed closely by 33572. This is a potential trigger point for an acceleration to the downside with 33048 the next major downside target.

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