E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weak Under 34100, Strong Over 34312

June E-mini Dow Jones Industrial Average futures traded over 200 points lower shortly before the mid-session on Monday as persistent weakness in technology stocks kept the blue chip average under pressure after last week’s hotter-than-expected inflation readings sparked a downturn in equity markets.

At 15:36 GMT, June E-mini Dow Jones Industrial Average futures are trading 34145, down 173 or -0.50%.

Weighing the most on the Dow were components Home Depot and Disney, both down more than 2.25%. Merck & Co Inc is trading 1.76% higher.

Walmart and Home Depot will deliver earnings on Tuesday.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 35000 will change the main trend to up. A move through 33200 will signal a resumption of the downtrend.

The main range is 31951 to 35000. Its retracement zone at 33476 to 33116 is controlling the near-term direction of the Dow. This zone stopped the selling at 33200 last Thursday.

The short-term range is 35000 to 33200. The Dow is currently testing its retracement zone at 34100 to 34312.

With the main trend down, sellers are trying to form a potentially bearish secondary lower top inside this zone. Aggressive counter-trend buyers are trying to trigger a breakout over 34312.

The minor range is 33200 to 34382. Its pivot at 33791 is the next downside target. Aggressive counter-trend buyers could come in on the first test of this level.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average into the close on Monday is likely to be determined by trader reaction to 34100 and 34312.

Bearish Scenario

A sustained move under 34100 will indicate the presence of sellers. If this move creates enough downside momentum then look for a break into 33791. Watch for a technical bounce on the first test of this level.

If 33791 is taken out then look for a possible acceleration into the main retracement zone at 33476 to 33116.

Bullish Scenario

A sustained move over 34312 will signal the presence of buyers. Taking out Friday’s high at 34382 will indicate the buying is getting stronger and could trigger an acceleration to the upside with 35000 the next likely upside target.