E-mini Dow Weakens Under 32903, Strenghtens Over 33118

June E-mini Dow Jones Industrial Average futures are putting in a mixed performance late in the session on Monday after giving back all of its earlier gains. Traders blamed a sharp drop in oil prices and worries over the lack of progress in Russia-Ukraine peace talks for the weakness. Position-squaring ahead of the start of the Federal Reserve’s two-day policy meeting on Tuesday is also controlling the price action.

Blue chip investors kept an eye on the Ukraine-Russia war, as the two countries resumed talks on Monday. A Ukrainian official said the country’s objectives were to secure a ceasefire and an immediate withdrawal of Russian troops, along with other security guarantees.

At 19:19 GMT, June E-mini Dow Jones Industrial Average futures are trading 32907, up 94 or +0.29%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $330.49, up $0.47 or +0.14%.

In stock related developments, Apple which was down 2.5%, was one of the top decliners in the Dow Monday as a COVID-19 outbreak in China led investors to worry that COVID restrictions could exacerbate the existing supply chain woes there. Other Dow components, Intel and Salesforce fell 3% and 2%, respectively.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 32218 will reaffirm the downtrend. A move through 34018 will change the main trend to up.

The minor trend is also down. A trade through 33588 will change the minor trend to up. This will shift momentum to the upside.

The first minor range is 32218 to 33588. The E-mini Dow is currently trading on the weak side of its pivot at 32903.

The second minor range is 34018 to 32218. Its pivot at 33118 is potential resistance and a trigger point for an upside breakout.

Short-Term Outlook

Look for the downside bias to resume on a sustained move under 32218, and for an upside bias to develop on a sustained move over 33118. Straddling these levels will continue to produce a choppy, two-sided trade, indicating investor indecision and impending volatility.