June E-mini Dow Jones Industrial Average futures are expected to post a strong gain on the opening based on the pre-market trade. Volume is expected to be a little light today as investors prepare for Wednesday’s U.S. Federal Reserve interest rate decision and monetary policy statement.
The price action on Tuesday is being driven by better-than-expected earnings reports from McDonald’s, which posted quarterly earnings and revenue that topped analysts’ expectations. General Electric reported better-than-expected first-quarter earnings. Merck and Pfizer beat expectations, but Alphabet’ earnings disappointed. After the bell, Dow component Apple reports.
At 14:11 GMT, June E-mini Dow Jones Industrial Average futures are trading 26592, up 45 or +0.17%.
Daily Technical Analysis
The main trend is up according to the daily swing chart; however, momentum has been trending lower for several days. A trade through 26694 will signal a resumption of the uptrend. The main trend will change to down on a trade through 26060.
The minor trend is down. This is the reason behind the lower momentum. A trade through 26292 will signal a resumption of the downtrend. A move through 26694 will change the minor trend to up.
The short-term range is 26694 to 26292. Its 50% level or pivot at 26493 is acting like support. It held earlier in the session.
The short-term range is 26060 to 26694. If the selling pressure continues, then look for the break to extend into 26377 to 26302.
The major retracement zone support and value area is 26036 to 25880.
Daily Technical Forecast
Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the pivot at 26493.
A sustained move over 26493 will indicate the presence of buyers. If this can create enough upside momentum, then look for the rally to possibly extend into the minor top at 26694. This is a potential trigger point for an acceleration into a resistance cluster at 26977 to 26988.
A sustained move under 26493 will signal the presence of sellers. This could trigger a further decline into an uptrending Gann angle at 26444. Since the main trend is up, look for buyers on the first test of this angle.
If 26444 fails as support then look for the selling to possibly extend into the retracement zone at 26377 to 26302. This is followed by the minor bottom at 26292.