June E-mini Dow futures are testing their high for the session late Monday as gains from banks and a rebound in megacap market leaders supported a broad-based rally following Wall Street’s longest streak of weekly declines since the dotcom bust more than 20 years ago.
At 20:15 GMT, the blue chip average is trading 31866, up 653 or +2.09%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $318.81, up $6.39 or +2.04%.
Dow component JPMorgan rose 7% after the bank said it expects to reach key return targets sooner than planned thanks to rising rates giving its lending business a boost. Citi and Bank of America also got a 7% boost, and Wells Fargo added more than 6.9%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 32692 will change the main trend to up. A move through 30585 will signal a resumption of the downtrend.
The minor range is 32692 to 30585. Late Monday, the E-mini Dow crossed to the strong side of its pivot at 31639, making it support.
The short-term range is 34027 to 30585. Its retracement zone at 32306 to 32712 is the next upside target area. Inside this zone is the main top at 32692.
The direction of the June E-mini Dow into the close on Monday and early Tuesday will be determined by trader reaction to the pivot at 31639.
A sustained move over 31639 will indicate the short-covering and the counter-trend buying is getting stronger. If this move creates enough upside momentum then look for a surge into the short-term 50% level at 32306.
A sustained move under 31639 will signal the presence of sellers. This could trigger a quick break into a minor pivot at 31255. Counter-trend buyers could come in on a test of this level, but if it fails then look for a retest of last week’s minor bottom at 30585.