E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Edging Higher on Low Volume, Volatility

June E-mini Dow Jones Industrial Average futures are up and trading nearly at its high of the session shortly after the cash market close on Friday as investors shrugged off a stronger-than-expected inflation reading.

Consumer inflation as measured by the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.7% in April, topping analysts’ 0.6% estimate and after a 0.4% increase in March. PCE is the Federal Reserve’s preferred measure of inflation.

In the 12 months through April, the core PCE price index surged 3.1%, smashing through the Fed’s 2% target, as the reopening economy unleashed pent-up demand.

At 20:17 GMT, June E-mini Dow Jones Industrial Average futures are at 34538, up 101 or 0.29%.

Dow component Salesforce.com provided the biggest boost for the blue chip average, adding 5.43% after raising its full-year forecast for revenue and profit, helped by increased demand for its cloud-based software during the pandemic.

Boeing Co fell 1.8% after reports said it halted deliveries of its 787 Dreamliners, adding fresh delays for customers following a recent five-month deliver suspension due to production problems.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was extended earlier in the session. Taking out the intraday high at 34639 will indicate the buying is getting stronger into the close. A move through 33402 will change the main trend to down.

The minor trend is also up. A trade through 34170 will change the minor trend to down. This will also shift momentum.

The short-term range is 35000 to 33200. Its retracement zone at 34312 to 34100 is support. The Dow is currently trading on the bullish side of this area.

The minor range is 33200 to 34639. Its retracement zone at 33920 to 33750 is additional support. Since the main trend is up buyers are likely to come in on a test of this area.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to 34437.

Bullish Scenario

A sustained move over 34437 will indicate the presence of buyers. Overtaking the intraday high at 34639 will indicate the buying is getting stronger at the close. This could fuel a higher opening when trading resumes on Tuesday.

Bearish Scenario

A sustained move under 34437 will signal the presence of sellers. This could trigger a break into the short-term Fibonacci level at 34312.

Side Notes

A close under 34437 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.

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