E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Recovery Rally Fueled by Drop in Yields

June E-mini Dow Jones Industrial Average futures are moving higher late in the session on Tuesday. Solid gains in Apple helped turn the market higher after an early setback was fueled by weakness in the retail sector, led by Walmart.

Demand for blue chip stocks was also boosted by a drop in the benchmark 10-year Treasury yield, which retreated back below 3%.

At 19.30 GMT, the June E-mini Dow is at 33169, up 257 or +0.78%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $332.14, up $2.69 or +0.82%.

Dow Rides Apple’s Strength Higher

Apple Inc shares were up 1.8%. The gains came despite news earlier in the day that the company much change the connector on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras.

Walmart’s Weakness Limits Dow’s Performance

Walmart Inc shares were down 1.7%, pressuring the Dow early in the session. The major retailer tumbled in sympathy with shares of Target Corp, which lost nearly 4% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through the two main tops at 33317 and 33434 will signal a resumption of the main trend. A move through 32491 will change the main trend to down.

The main range is 36708 to 30585. Its retracement zone at 33647 to 34369 is resistance.

The short-term range is 30585 to 33434. If the main trend changes to down then look for a break into its retracement zone at 32010 to 31673.

The minor range is 33434 to 32491. The market is currently trading on the strong side of its pivot at 32963, making it support.

Short-Term Outlook

Trader reaction to 32963 is likely to determine the direction of the June E-mini Dow into the close on Tuesday or on Wednesday’s premarket opening.

Bullish Scenario

A sustained move over 32963 will indicate the presence of buyers. This could trigger a late session rally on Tuesday or an early session rally on Wednesday with the first two targets the main tops at 33317 and 33434.

Bearish Scenario

A sustained move under 32963 will signal the presence of sellers with 32603 and 32491 late session or early Wednesday targets.