E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 32904 Sets the Tone

June E-mini Dow Jones Industrial Average futures are inching higher early Thursday, but off its high after the Federal Reserve said late Wednesday afternoon that it does not currently expect to hike interest rates through 2023. The after-hours rally comes after a late-session surge during Federal Reserve Chairman Powell’s post-meeting press conference.

At 04:53 GMT, June E-mini Dow Jones Industrial Average futures are trading 32981, up 77 or +0.23%.

Powell reiterated that the central bank wants to see inflation consistently above its 2% target and material improvement in the U.S. labor market before considering changes to rates or its monthly bond purchases.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous session’s high.

The main trend changes to down on a move through the nearest main bottom at 30429. This is highly unlikely but the index is up 10 sessions from its last main bottom on March 4, which puts it inside the window of time for a potentially bearish closing price reversal top.

The minor trend is also up. The minor trend changes to down on a move through 31613. This will also shift momentum to the downside.

The first minor range is 31613 to 33057. Its 50% level at 32335 is the nearest support. This level will move up if the Dow moves higher.

The second minor range is 30429 to 33057. Its 50% level at 31743 is the next support level. It’ll also move up.

The main retracement zone support is 31254 to 30828.

Daily Swing Chart Technical Analysis

The direction of the June E-mini Dow Jones Industrial Average futures contract on Thursday is likely to be determined by trader reaction to 32904.

Bullish Scenario

A sustained move over 32904 will indicate the presence of buyers. Taking out the intraday high at 33057 will indicate the buying is getting stronger. This could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under 32904 will signal the presence of sellers. If this creates enough downside momentum then look for a possible acceleration into the minor pivot at 32335.

A close under 32904 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.