E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Looking to Extend Rally Thru 32999

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the mid-session on Friday. The catalysts behind the move are upbeat earnings, strength in consumer spending and signs that inflation was peaking. The price action suggests the news is favorably enough to dampen concerns about a sharp slowdown in economic growth.

At 15:03 GMT, the June E-mini Dow is at 32812, up 212 or +0.65%. The SPDR Dow Jones Industrial Average ETF (DIA) is at $328.62, up $2.17 or +0.67%.

Economic News Driving Prices Higher

Traders are reacting favorable to a slew of U.S. economic reports released earlier today especially reports on inflation and consumer spending.

Reports from the Commerce Department showed consumer spending rose by a more-than-expected 0.9% in April and inflation rose at a slower rate. The positive results are raising hopes that the Federal Reserve might not hike rates as aggressively as previously thought.

March spending growth was also revised to 1.4% from 1.1%. The personal consumption expenditures price index, the Fed’s preferred inflation gauge, gained 0.2% last month after shooting up 0.9% in March.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out yesterday’s high. A trade through 30585 will change the main trend to down. The next target is the main top at 34027.

The short-term range is 34027 to 30585. The E-mini Dow is currently trading on the strong side of its retracement zone at 32712 to 32306, making it support.

The intermediate range is 35413 to 30585. Its pivot at 32999 is the next upside target.

The primary upside target of this rally is the retracement zone at 33647 to 34369.

Daily Swing Chart Technical Forecast

Trader reaction to 32712 will determine the direction of the June E-mini Dow Jones futures contract into the close on Friday.

Bullish Scenario

A sustained move over 32712 will indicate the presence of buyers. The next target is 32999. Taking out this level could create the upside momentum needed to challenge the main 50% level at 33647.

Bearish Scenario

A sustained move under 32712 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the 50% level at 32306. Buyers could come in on the first test of this level, but if it fails then look for the counter-trend selling to get stronger.

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.