E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Weakness Led by Steep Drop in Cisco

June E-mini Dow Jones Industrial Average futures are trading lower after the cash market close on Thursday as investors continued to dump equities on fears Federal Reserve rate hikes to fight rapid inflation would top the economy into a recession.

Leading the E-mini Dow lower were shares of Cisco. The company is the latest to plunge on results with the tech bellwether down 13.7% on Thursday. Cisco said after the bell Wednesday that quarterly revenue fell short of analysts’ expectations and it warned revenue would disappoint in the current quarter.

At 20:23 GMT, the June E-mini Dow is trading 31196, down 244 or -0.78%. On Thursday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $313.15, down $2.40 or -0.76%.

In U.S. economic news, weekly jobless claims rose to 218,000 for the week-ending May 14, the Labor Department said Thursday, the latest hint that economic growth is slowing.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 30955 will signal a resumption of the downtrend. A move through 32692 will change the main trend to up.

The minor range is 32692 to 30955. Its 50% level or pivot at 31824 is the nearest resistance.

The short-term range is 34027 to 30955. Its retracement zone at 32491 to 32853 is a key resistance area.

Short-Term Outlook

We’re likely to continue to see further downside pressure with the bears eyeing the March 4, 2021 bottom at 29987 as their next target.

The nearest upside target for Friday’s premarket session is 31824. Since the main trend is down, sellers are likely to come in on a test of that level.

As we saw earlier in the week, the market is in the hands of strong sellers. This means they are going to sell rallies until the trend changes to up and the pattern is broken.

Bad news will give them an excuse to sell weakness too so don’t be surprised if they decide to pound this market lower through Thursday’s low at 30955.

As far as the buyers are concerned, there is no upside momentum which means they are going to wait until the market hits a previous value area. Unfortunately for investors, the nearest value is 29987.

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.