E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Down on Economic Slowdown Concerns
June E-mini Dow Jones Industrial Average futures are under pressure shortly after the cash market close on Wednesday. The price action suggests the weakness may carry over into Thursday’s opening. Weighing on the blue chip average are concerns over a potential economic slowdown and firm U.S. Treasury yields.
Investors Worried about Economic Slowdown
The Atlanta Federal Reserve’s GDPNow tracker shows a growth rate of just 0.9% for the second quarter, down from 1.3% last week.
Deutsche Bank chief U.S. economist Matthew Luzzetti, who previously called for a recession by the end of 2023, said in a note to clients on Wednesday that the odds for a recession are likely to rise in the coming months.
The World Bank on Tuesday slashed its global growth forecast by nearly a third to 2.9% to 2022, warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19 pandemic, and many countries now faced recession.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 32491 will change the main trend to down. A move through 33317 and 33434 will reaffirm the uptrend.
The minor range is 33434 to 32491. The market is currently straddling its pivot at 32963.
On the upside, the resistance is the main retracement zone at 33647 to 34369. On the downside, the next key target area is the retracement zone at 32010 to 31673.
Wednesday’s price action suggests the direction of the E-mini Dow into the close and on the opening Thursday will be determined by trader reaction to the pivot at 32963.
A sustained move under 32963 could trigger a near-term break into 32010 – 32673.
A sustained move over 32963 could lead to a test of the main retracement zone at 33647 -34369.