E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 33331 Sets the Tone

June E-mini Dow Jones Industrial Average futures are inching higher early Thursday suggesting the blue chip average may make a run at another record high during the cash market session. After gapping higher on Monday, the market has posted a mostly muted trade while the benchmark S&P 500 Index has enjoyed a series of moves to record levels.

At 05:18 GMT, June E-mini Dow Jones Industrial Average futures are trading 33396, up 68 or +0.20%.

In economic, Dow investors seemed pacified following the release of the Fed’s latest meeting minutes late Wednesday. The minutes showed that officials plan to keep the pace of asset purchases the same for some time as the central bank works to support stable prices and maximum employment.

Later today at 12:30 GMT, investors will get the opportunity to react to the latest report on weekly initial unemployment claims. Economists polled by Dow Jones expect first-time claims to total 694,000 during the week-ended April 3.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, three straight days of inside moves suggests investor indecision and impending volatility. The uptrend will resume on a trade through 33504, while a move through 31951 will change the main trend to down.

The Dow is up nine sessions from its most recent main bottom, which makes it vulnerable to a potentially bearish closing price reversal top.

The minor range is 33157 to 33504. Its 50% level or pivot is 33331.

The short-term range is 31951 to 33504. Its retracement zone at 32728 to 32544 is potential support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to 33331.

Bullish Scenario

A sustained move over 33331 will indicate the presence of buyers. The first upside target is 33504. Taking out this level will signal a resumption of the uptrend. This could trigger an acceleration to the upside.

Bearish Scenario

A sustained move over 33331 will signal the presence of sellers. If this creates enough downside momentum then look for a test of 33157.

Taking out 33157 could drive the Dow into 33060. This will fill in Monday’s gap opening.

For a look at all of today’s economic events, check out our economic calendar.