The June E-mini June Dow Jones Industrial Average is trading higher shortly before the opening. The market opened lower in the overnight session as investors took precautions against possible unrest in Cyprus. Once it became clear that Cypriot banks would open without any major issues, shorts covered and new buyers stepped in. This doesn’t mean the problems in the Euro Zone have gone away, it still faces political uncertainty in Italy, a slowdown in the economy and the possibility of additional stimulus from the European Central Bank.
Although the market is firm in pre-market activity, thin trading conditions could lead to volatility so traders should brace of the possibility of a two-sided trade. Controlling the downside is an uptrending Gann angle at 14417 and a short-term pivot price at 14393. The pivot is the most important level to watch since the Dow has established support three times this week at or near this level. Crossing to the weak side of this pivot could draw the attention of short-sellers.
On the upside, the first target is the contract high at 14517. This is followed by a long-term uptrending Gann angle at 14620.