E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Reaction to 33570 Sets Tone into Close

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market close on Wednesday. The blue chip average hit another record high early in the session as investors digested the first batch of corporate earnings that largely exceeded expectations.

Shortly before the cash market opening, futures were trading higher, led by Goldman Sachs and JPMorgan Chase.

At 19:09 GMT, June E-mini Dow Jones Industrial Average futures are at 33632, up 62 or +0.18%.

Shares of Goldman Sachs climbed more than 3% after the bank blew past analysts’ expectations with record first-quarter net profits and revenues on strong performance from the firm’s equities trading and investment banking units.

JPMorgan Chase beat analysts’ estimates on the top and bottom lines, helped by a $5.2 billion benefit from releasing money it had previously set aside for loan losses that didn’t develop.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed early in the session when buyers took out the previous high at 33712.

A trade through 31951 will change the main trend to down. This is highly unlikely, but due to the prolonged move up in terms of price and time, the Dow is inside the window of time for a potentially bearish closing price reversal top.

The minor range is 33157 to 33800. Its 50% level or pivot at 33479 is potential support.

The short-term range is 31951 to 33800. Its retracement zone at 32876 to 32657 is the nearest support area.

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 33570.

Bullish Scenario

A sustained move over 33570 will indicate the presence of buyers. If this creates enough upside momentum then look for a possible retest of the intraday high at 33800.

Bearish Scenario

A sustained move under 33570 will signal the presence of sellers. The first downside target is the pivot at 33479. Taking out this level could trigger an acceleration to the downside with 33157 the next potential downside target.

Side Notes

A close under 33570 will form a closing price reversal top. If confirmed on Thursday, this could trigger the start of a 2 to 3 day correction.

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