E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Bullish Traders Targeting 32306 – 32712

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%.

Although the E-mini Dow was helped by solid gain in tech and tech-adjacent growth stocks like Apple Inc and Microsoft Corp, it was the banks stocks that primarily drove the market’s momentum.

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 June E-mini Dow Jones Industrial Average

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.

Short-Term Outlook

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.

Bullish Scenario

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.

Bearish Scenario

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.

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Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.