E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Straddling Pivot at 32940 on Low Volume

June E-mini Dow Jones Industrial Average futures are inching lower shortly before the cash market opening as investors digest the potential impact from President Joe Biden’s infrastructure spending plan.

Investors showed little reaction to today’s robust ADP private sector jobs report, which suggests the number may have already been priced into the market.

ADP reported that private payrolls in March expanded at the fastest pace since September 2020 with companies adding 517,000 workers for the month. It was a healthy spike from the 176,000 in February though just below the 525,000 Dow Jones Estimate.

At 12:59 GMT, June E-mini Dow Jones Industrial Average futures are trading 32909, down 16 or -0.05%.

President Biden will unveil a more than $2 trillion package in infrastructure spending on Wednesday. The plan would raise the corporate tax rate to 28% to fund it, an administration official told reporters Tuesday night. The White House said the tax hike, combined with measures designed to stop offshoring of profits, would fund the infrastructure plan within 15 years.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 33134 will signal a resumption of the uptrend. The main trend will change to down on a move through 31951.

The first minor range is 32746 to 33134. The market is currently straddling its pivot at 32940.

The next two downside targets and potential support levels come in at 32543 and 32365. The latter is the last potential support before the 31951 main bottom.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Wednesday will be determined by trader reaction to 32940.

Bullish Scenario

A sustained mover over 32940 will indicate the presence of buyers. This could trigger a surge into 33134. Taking out this level could trigger an acceleration to the upside. It all depends on the buying volume, which is pretty light at this time.

Bearish Scenario

A sustained move under 32940 will signal the presence of sellers. If the momentum is strong enough on this move then look for the selling to possibly extend into 32746. If this price fails then look for the selling to possibly extend into the pivot at 32543, followed by another 50% level at 32365.