E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 32365 Sets the Tone

June E-mini Dow Jones Industrial Average futures are inching lower during the early session on Monday, however, it is attempting to claw back from early session lows. Investor capital seems to be flowing back into the beat up technology sector and away from the growth-oriented Dow. Helping to give the value sector a boost is lower Treasury yields. The 10-year Treasury yield fell 5 basis points to 1.68%, after touching a 14-month high last week (1 basis point equals 0.01%).

At 10:40 GMT, June E-mini Dow Jones Industrial Average futures are trading 32423, down 80 or -0.25%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on March 18.

A trade through 33116 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a move through 30429.

The minor trend is also up. A trade through 31613 will change the minor trend to down. This will confirm the shift in momentum.

The new minor range is 33116 to 32314. Its 50% level at 32715 is the next upside target.

The first minor range is 31613 to 33116. The market is currently straddling its 50% level at 32365.

The second minor range is 30429 to 33116. Its 50% level at 31773 is another potential downside target.

The major support range is 31283 to 30850.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 32365.

Bullish Scenario

A sustained move over 32365 will indicate the presence of buyers. If this creates enough upside momentum then look for the move to possibly extend into the pivot at 32715. Since the main trend is down, sellers could come in on the first test of this level. Overcoming this level could trigger a surge into 33116.

Bearish Scenario

A sustained move under 32365 will signal the presence of sellers. Taking out the intraday low at 32314 will indicate the selling pressure is getting stronger. This is a potential trigger point for an acceleration to the downside with 31773 the next potential downside target.

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