E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Minor Trend, Momentum Shift to Down

June E-mini Dow Jones Industrial Average futures are trading sharply lower, dragged down by a sell-off in shares of Boeing and worries that a spike in coronavirus cases globally would have a negative impact on travel-related companies.

Dow component Boeing Company fell 4% after it announced the unexpected retirement of its chief financial officer for the past decade, Greg Smith. Another component, Nike Inc, dropped 4.2% and was among the top drags on the blue-chip Dow after Citigroup lowered its rating on the company’s shares to “neutral” from ‘buy”.

At 19:12 GMT, June E-mini Dow Jones Industrial Average futures are at 33649, down 309 or -0.91%.

On the positive side, International Business Machines Corp rose 4.2% after recording the biggest rise in quarterly sales in more than two years.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 34144 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest swing bottom at 31951.

The minor trend is down. This shifted momentum to the downside. The minor trend turned down earlier today when sellers took out the minor bottom at 33860. A trade through 34066 will change the minor trend to up.

The minor range is 33157 to 34144. The Dow is currently testing its 50% level or pivot at 33651.

The short-term range is 31951 to 34144. Its 50% level at 33048 is another potential downside target and support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to 33651.

Bearish Scenario

A sustained move under 33651 will indicate the selling is getting stronger. This could trigger the start of a steep break with 33048 the next likely downside target.

Bullish Scenario

A sustained move over 33651 will signal the presence of buyers. This could trigger a quick surge into a minor pivot at 33858. Sellers could come in on the first test of this level. Overtaking it, will likely lead to a retest of the record high at 34144.

Side Notes

The daily chart indicates there is no real support under 33651 so be prepared for an acceleration to the downside. Furthermore, there is a price gap at 33157 to 33060. This is another potential downside target.