E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Having Trouble Sustaining Early Strength

June E-mini Dow Jones Industrial Average futures are edging higher shortly after the cash market opening on Monday as investors remained neutral ahead of a major U.S. inflation report later this week, while heavyweight technology shares largely shrugged off a deal by the world’s richest nations on a global minimum corporate tax.

At 13:35 GMT, June E-mini Dow Jones Industrial Average futures are trading 34769, up 27 or +0.08%.

On Thursday, June 10, investors will get the opportunity to react to the latest CPI and Core CPI reports. Consumer inflation for May is expected to have risen by 0.4%, down from 0.8% in April. Core CPI is expected to have risen by 0.4%, down from 0.9% in April.

Providing the support early in the session is Visa. The credit card company is trading 233.34, up $3.20 or +1.39%. On the downside, Dow Inc is trading $69.66, down $0.71 or -1.01%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The high of the session is 34825, just shy of the 34827 main top. A trade through this price will reaffirm the uptrend. The major top is the contract high at 35000. A new main bottom was formed at 34310. A trade through this level will change the main trend to down.

The minor trend is down. A trade through 34827 will change the minor trend to up.

The minor range is 34170 to 34827. Its 50% level at 34499 is support.

The first short-term range is 34402 to 34827. Its 50% level at 34115 is a potential support level. The second potential downside target and support area is a retracement zone at 34014 to 33822.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to 34742.

Bullish Scenario

A sustained move over 34742 will indicate the presence of buyers. Taking out 34827 will reaffirm the uptrend and could trigger an acceleration to the upside with 35000 the next major upside target.

Bearish Scenario

A sustained move under 34742 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the minor pivot at 34499. Since the main trend is up, buyers could come in on the first test of this level. If it fails then look for the selling to possibly extend into the main bottom at 34310.