E-mini Dow: Strengthens Over 34397, Weakens Under 34288

June E-mini Dow Jones Industrial Average futures are edging lower early Monday, but inside the previous session’s range, suggesting investor indecision and impending volatility. So far we haven’t seen any follow-through to the upside following last week’s surprisingly strong performance that saw the Blue Chip Average rise 5.5% for the week.

At 11:30 GMT, June E-mini Dow Jones Industrial Average futures are trading 34575, down 58 or -0.17%. On Friday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $347.22, up $2.54 or +0.74%.

The Dow is being pressured in the pre-market session partly by a drop of more than 6% by Boeing after a China Eastern Airlines Boeing 737 passenger plane crashed.

In other news, Nike’s post-earnings comments Monday could be a harbinger of how the retail industry is being affected by the war in Ukraine, sky-high oil prices and inflationary pressures that threaten to curtail consumer spending.

According to CNBC, the sneaker giant is set to report its results for the fiscal third quarter after the market closes. Nike’s exposure to China is also under a microscope, as the United States may choose to impose consequences if Beijing helps Russia wage its war against Ukraine and Western brands face continued boycotts throughout Asia.

Nike is expected to report 2022 fiscal third-quarter revenue of $10.6 billion, on earnings of 71 cents per share, according to a survey of analysts by Refinitiv.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 34705 will signal a resumption of the uptrend. A move through the main top at 34950 reaffirms the uptrend. The main trend will change to down on a trade through 32578.

The main range is 36708 to 32086. The E-mini Dow is currently trading inside its retracement zone at 34397 to 34942.

The short-term range is 35649 to 32086. The market is currently trading on the strong side of its retracement zone, making it support.

The minor range is 32578 to 34705. Its 50% level or pivot at 33642 is additional support.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average futures contract on Monday is likely to be determined by trader reaction to 34397.

Bullish Scenario

A sustained move over 34397 will indicate the presence of buyers. Taking out 34705 will indicate the buying is getting stronger. This could trigger a surge into the resistance cluster at 34942 to 34950. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 34397 will signal the presence of sellers. The first downside target is 34288. This is a potential trigger point for an acceleration into 33868, followed by 33642.