E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 34499 Sets the Tone

June E-mini Dow Jones Industrial Average futures are trading flat as investors prepared for the release of several economic reports on Thursday and the U.S. Non-Farm Payrolls report on Friday. The outcome of these reports, especially the jobs data, could influence Fed policy when it meets in mid-June.

At 06:20 GMT, June E-mini Dow Jones Industrial Average futures are trading 34576, down 14 or -0.04%.

Inflation remains in focus after the release of the core personal consumption expenditures index – a key inflation gauge – last week. The core PCE rose 3.1% in April from a year earlier, hotter than expected. The report apparently raised some concerns on Wall Street because the rally appears to have stalled.

In other news, the Federal Reserve’s Beige Book published on Wednesday reported businesses are facing rising costs, particularly on goods used to make their products. The Fed also found that firms are offering higher wages and other incentives to lure employees back to work.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 34827 will signal a resumption of the uptrend. A move through 33402 will change the main trend to down.

The minor trend is also up. A trade through 34408 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 34170 to 34827. Its 50% level at 34499 is potential support.

The second minor range is 34402 to 34827. Its 50% level at 34115 is another potential support level.

The short-term range is 33200 to 34827. If the minor trend changes to down then its retracement zone at 34014 to 33822 will become the primary downside target.

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 the minor pivot at 34499.

Bullish Scenario

A sustained move over 34499 will indicate the presence of buyers. If this creates enough upside momentum then look for the move to possibly extend into 34827. Taking out this level will reaffirm the uptrend with 35000 the next likely upside target.

Bearish Scenario

A sustained move under 34499 will signal the presence of sellers. The first target is 34408. Taking out this level will indicate the selling is getting stronger with 34170, 34115 and 34014 the next likely downside targets.