E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Down on Economic Slowdown Concerns

June E-mini Dow Jones Industrial Average futures are under pressure shortly after the cash market close on Wednesday. The price action suggests the weakness may carry over into Thursday’s opening. Weighing on the blue chip average are concerns over a potential economic slowdown and firm U.S. Treasury yields.

At 20:15 GMT, June E-mini Dow Jones Industrial Average futures are trading 32919, down 246 or -0.74%. The SPDR Dow Jones Industrial Average ETF (DIA) settled at $329.44, down $2.73 or -0.82%.

Investors Worried about Economic Slowdown

The Atlanta Federal Reserve’s GDPNow tracker shows a growth rate of just 0.9% for the second quarter, down from 1.3% last week.

Deutsche Bank chief U.S. economist Matthew Luzzetti, who previously called for a recession by the end of 2023, said in a note to clients on Wednesday that the odds for a recession are likely to rise in the coming months.

The World Bank on Tuesday slashed its global growth forecast by nearly a third to 2.9% to 2022, warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19 pandemic, and many countries now faced recession.

Stocks in the News

Intel Corp slid 5% as Citi Research warned the chipmaker could pre-announce weaker-than-expected earnings for the second quarter.

The financial sector also took a hit with Goldman Sachs Group dropping 2.12%, American Express off by 1.62% and JPMorgan Chase down 1.59%.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 32491 will change the main trend to down. A move through 33317 and 33434 will reaffirm the uptrend.

The minor range is 33434 to 32491. The market is currently straddling its pivot at 32963.

On the upside, the resistance is the main retracement zone at 33647 to 34369. On the downside, the next key target area is the retracement zone at 32010 to 31673.

Short-Term Outlook

Wednesday’s price action suggests the direction of the E-mini Dow into the close and on the opening Thursday will be determined by trader reaction to the pivot at 32963.

Bearish Scenario

A sustained move under 32963 could trigger a near-term break into 32010 – 32673.

Bullish Scenario

A sustained move over 32963 could lead to a test of the main retracement zone at 33647 -34369.

For a look at all of today’s economic events, check out our economic calendar.

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.