E-Mini Dow Remains Strong Above 34942 Fibonacci Support

June E-mini Dow Jones Industrial Average futures are trading nearly flat in overnight trading Wednesday ahead of the last trading day of the month and quarter. The blue chip average finished lower on Wednesday, snapping its four-day winning streak.

Rising oil prices were primarily responsible for capping equity gains in yesterday’s session, but they did help boost energy stocks, which helped drive the S&P Energy Sector Index higher.

At 05:56 GMT, June E-mini Dow Jones Industrial Average futures are trading 35145, up 28 or +0.08%. On Wednesday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $352.14, down $0.83 or -0.23%.

The biggest gainers on Wednesday were UnitedHealth Group, which posted a 1.98% gain. This was followed by Walmart and Johnson & Johnson, up 1.79% and 1.04%, respectively.

The biggest losers were Home Depot, Salesforce.com and Visa, which were down 2.91%, 2.87% and 1.83%, respectively.

On Thursday, investors will get the opportunity to react to a slew of U.S. economic data including Core PCE Price Index, Weekly Unemployment Claims, Personal Income and Personal Spending.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35281 will signal a resumption of the uptrend. A move through 34214 will change the main trend to down.

The minor trend is also up. A trade through 34445 will change the minor trend to down. This will shift momentum to the downside.

The main range is 36708 to 32086. The E-mini Dow is currently trading on the strong side of its retracement zone at 34942 to 34397, making it support.

The minor range is 34214 to 35281. Its 50% level or pivot at 34748 is the next potential support.

The short-term range is 35649 to 32086. Its retracement zone at 34288 to 33868 is another potential support area.

The key support clusters are 34942 – 34748 and 34397 – 34288.

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 35190.

Bearish Scenario

A sustained move under 35190 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into 34942, followed by 34748.

Taking out 34748 could trigger an acceleration to the downside with 34397 to 34288 the next likely target. This is the last support before the 34214 main bottom.

Bullish Scenario

A sustained move over 35190 will signal the presence of buyers. The first target is 35281. This price is a potential trigger point for an acceleration to the upside with 35649 the primary target.

Taking out 35649 will reaffirm the uptrend. This could trigger an acceleration into the January 13 main top at 36300.