E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – In Position to Post Bearish Reversal Top

June E-mini Dow Jones Industrial Average futures are trading sharply lower shortly ahead of the cash market close on Thursday. After trading steady to lower most of the session, the selling accelerated late in the session as more investors grew nervous over rapidly rising Treasury yields.

The selling pressure was mostly lead by technology shares. Dow components Apple was off by at least 2.5% and Microsoft was down at least 2% late in the session. Bank stocks like Dow components JPMorgan and Goldman Sachs jumped nearly 2%.

At 19:55 GMT, June E-mini Dow Jones Industrial Average futures are trading 32779, down 125 or -0.38%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, the market is in a position to post a potentially bearish closing price reversal top, which could shift momentum to the downside.

A trade through 33116 will signal a resumption of the uptrend. The main trend will change to down on a move through 30429.

The minor trend is also up. A trade through 31613 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 31613 to 33116. Its 50% level at 32365 is the first potential downside target.

The second minor range is 30429 to 33116. Its 50% level at 31773 is the next potential downside target.

The next major downside target and potential support zone is 31283 to 30850.

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 32904.

Bearish Scenario

A sustained move under 32904 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the first pivot at 32365.

Bullish Scenario

Recapturing 32904 into the close will indicate the presence of buyers. This could generate the upside momentum needed for a retest of 33116.

Side Notes

A close under 32904 will form a closing price reversal top on the daily chart. If confirmed, this could trigger the start of a 2 to 3 day correction with potential downside targets a pair of 50% levels at 32365 and 31773.