E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strong Over 31639, Weak Under 31255
June E-mini Dow Jones Industrial Average futures are trading lower at the mid-session on Tuesday, but inside yesterday’s trading range. The chart pattern suggests investor indecision and impending volatility. It could also be signaling an upcoming transition from bearish to bullish.
At 17:34 GMT, June E-mini Dow Jones Industrial Average futures are trading 31548, down 291 or -0.91%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $316.01, down $2.83 or -0.89%.
Fundamentally, investors are worried about supply chain problems and surging costs that are hurting corporate earnings and slowing manufacturing output. U.S. business activity slowed in May, with S&P Global attributing the decline in its U.S. Composite PMI Output to “elevated inflationary pressures, a further deterioration in supplier delivery times and weaker demand growth.”
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is edging higher. A trade through 32692 will change the main trend to up. A move through 30585 will signal a resumption of the downtrend.
The minor trend turned up on Monday, shifting momentum to the upside. A trade through 30585 will change the minor trend to down. A move through 31925 will strengthen the trend.
The E-mini Dow is currently testing a pair of pivots at 31255 and 31639.
The short-term range is 34027 to 30585. Its retracement zone at 32306 to 32712 is the next major upside target and potential resistance.
Daily Swing Chart Technical Forecast
The early price action suggests trader reaction to 31639 will determine the direction of the E-mini Dow into the close on Tuesday.
A sustained move over 31639 will indicate the presence of buyers. Taking out 31925 will indicate the buying is getting stronger. This could trigger a late session surge into 32306 – 32712.
A sustained move under 31639 will signal the presence of sellers. The first target is 31255. Countertrend traders could come in on the first test of this level, but if it fails then look for a possible retest of last week’s low at 30585.