E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Decision Time at 34100 to 34312

June E-mini Dow Jones Industrial Average futures are trading higher late in the session on Friday. The market is a little off its high, but is not facing the same pressure at the tech-weighted S&P 500 and NASDAQ Composite.

Helping to boost the blue chip Dow for a second session were strong U.S. factory and services activity surveys which lifted sentiment at the end of a volatile week of trading.

At 19:09 GMT, June E-mini Dow Jones Industrial Average futures were trading 34195, up 167 or +0.49%.

IHS Markit’s data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor.

Helping the Dow outperform was Boeing, which added about 3% as industry sources said the planemaker has drawn up preliminary plans for a fresh print in 737 MAX output to as many as 42 jets a month in fall 2022.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 34423 will change the main trend to up. A move through the pair of main bottoms at 33402 and 33200 will signal a resumption of the downtrend.

The main range is 31951 to 35000. Its retracement zone at 33476 to 33116 is support. This zone stopped the selling at 33402 and 33200 earlier in the month. This zone is controlling the near-term direction of the Dow.

The short-term range is 35000 to 33200. Its retracement zone at 34100 to 34312 is resistance and a potential trigger point for an acceleration to the upside. The Dow is currently testing the upper level of this range.

The minor range is 33200 to 34423. Its 50% level at 33812 is potential support.

Short-Term Outlook

The direction of the June E-mini Dow Jones Industrial Average into the close on Friday is likely to be determined by trader reaction to 34312.

Bullish Scenario

A sustained move over 34312 will indicate the presence of buyers. The first upside target is the main top at 34423. This is a potential trigger point for an acceleration to the upside with 35000 the next major upside target.

Bearish Scenario

A sustained move under 34312 will signal the presence of sellers. The first downside target is the 50% level at 34100. This is a potential trigger point for an acceleration to the downside with the 33812 pivot the next likely target.