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James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are edging higher shortly after the cash market opening after clawing back earlier losses. The catalysts behind the early strength are a pair of U.S. economic reports that seemed to have calmed the nerves of investors.

First-time filings for unemployment insurance totaled 2.44 million last week, close to economist estimates. Investors weren’t spooked by the news because the number indicated the number of claims was flattening out.

In other news, both the Flash Manufacturing PMI and Flash Services PMI came in better than expected although both signaled the sectors were still in contraction.

At 13:59 GMT, June E-mini Dow Jones Industrial Average futures are trading 24565, up 46 or +0.19%.

On Wednesday, Dow components Apple, Disney and McDonald’s all added at least 30 points to the blue-chip index amid a surge in reopening optimism.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart although upside momentum has taken a slight dip since Tuesday.

A trade through 24765 will signal a resumption of the uptrend, while a move through 22704 will change the main trend to down.

The main range is 29506 to 18086. Its retracement zone at 23796 to 25144 is controlling the longer-term direction of the Dow. The average is currently trading inside this zone.

The intermediate range is 26962 to 18086. Its retracement zone at 23571 to 22524 is support.

The two zones form a support cluster at 23796 to 23571.


Daily Swing Chart Technical Forecast

Shortly after the opening on Thursday, the June Dow Jones Industrial Average is trading inside the retracement zone at 23796 to 25144. These are the major levels.

Bullish Scenario

A sustained move over 24765 will indicate the presence of buyers. This should lead to a test of the next main top at 24792, followed closely by the Fibonacci level at 25144.

Taking out 25144 with conviction could trigger an acceleration to the upside with the next major target the March 3 top at 26962.

Bearish Scenario

A sustained move under 24076 will be the first sign of weakness. This should lead to a test of the 50% level at 23796 and the Fibonacci level at 23571. Since the main trend is up, buyers are likely to step in.

If 23571 fails as support then look for an acceleration to the downside with the next major targets 22704 and 22524.

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