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June E-mini Dow Jones Industrial Average are inching higher early Tuesday after posting a relatively modest gain the previous session. A solid performance in the technology sector drove the benchmark S&P 500 and tech-driven NASDAQ Composite more than 1% higher on Monday, helping to drag blue chip Dow to its highest level since May 11.
At 02:09 GMT, June E-mini Dow Jones Industrial Average futures are trading 34400, up 48 or +0.14%.
The Dow was mostly support the previous session by strong performances by tech giants Apple and Microsoft. Each rose about 2% on the day. The catalyst behind the rise in technology shares was driven by stabilizing interest rates as yields on the benchmark 10-year Treasury bond hit a two-week low.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Monday when buyers edged through the previous may top at 34423. A trade through 33402 will change the main trend to down.
The short-term range is 35000 to 33200. The Dow is currently trading on the bullish side of its retracement zone at 34312 to 34100. This area is new support.
The main range is 31951 to 35000. Its retracement zone at 33476 to 33116 is controlling the near-term direction of the Dow.
Daily Swing Chart Technical Forecast
The direction of the June E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the short-term Fibonacci level at 34312.
Bullish Scenario
A sustained move over 34312 will indicate the presence of buyers. If this move creates enough near-term momentum then look for the rally to eventually extend into the all-time high at 35000.
Bearish Scenario
A sustained move under 34312 will signal the presence of sellers. The first downside target is the short-term 50% level at 34100.
We could see a technical bounce on the first test of 34100, but if it fails then look for the selling to extend into a minor pivot at 33815. Once again buyers could come in on a test of this level. If it fails then look for the selling to possibly extend into the main retracement zone at 33476 to 33116.
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This article was originally posted on FX Empire