June E-mini Dow Trading on Weak Side of 33357 – 33750 Retracement Zone

June E-mini Dow Jones Industrial Average futures are edging lower in overnight trading after posting a lower close the previous session following a wicked intraday reversal to the downside. When the dust finally cleared on Thursday, the blue chip average had posted its worst day since 2020.

At 02:04 GMT, June E-mini Dow Jones Industrial Average futures are trading 32823, down 87 or -0.26%. On Thursday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $330.36, down $10.23 or -3.00%.

Thursday’s Recap

The June E-mini Dow pulled back sharply on Thursday, completely erasing a rally from the prior session in a stunning reversal that delivered investors one of the worst days in two years.

Reuters reported that the broad sell-off the previous session was fueled by a plunge in investor sentiment in the face of concerns that the Federal Reserve’s interest rate hike on Wednesday would not be enough to tame surging inflation.

Looking Ahead…

Investors are looking ahead to the April jobs report, set for release Friday morning. Economists surveyed by Dow Jones expect employers added 400,000 jobs to nonfarm payrolls, down slightly from 431,000 in March. The unemployment rate is expected to fall to 3.5% in April, down from 3.6% in March, according to Dow Jones.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 32358 will signal a resumption of the downtrend. A move through 35413 will change the main trend to up.

The minor trend is also down. A trade through 34038 will change the minor trend to up. This will also shift momentum to the upside.

The nearest resistance is the short-term Fibonacci level at 33357, followed by the short-term 50% level at 33750.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average futures contract on Friday is likely to be determined by trader reaction to 33193.

Bearish Scenario

A sustained move under 33192 will indicate the presence of sellers. The first downside target is the main bottom at 32358, followed by another main bottom at 32218.

The main target is the February 24 main bottom at 32086. This is a potential trigger point for an acceleration into the March 25, 2021 main bottom at 31539.

Bullish Scenario

A sustained move over 33192 will signal the presence of buyers. This could lead to a quick test of 33357. Overtaking this level will be a sign of strength with the next target a resistance cluster at 33750 – 33886.