Yahoo Finance E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Investors Eyeing March 3 Top at 26962
June E-mini Dow Jones Industrial Average futures rallied on Wednesday as signs of an economic recovery from mandated shutdowns helped investors look beyond U.S. social unrest and pandemic worries. Yesterday’s move was primarily fueled by sharp rises in the financial, industrial and technology sectors. The Dow cash market is now 11.1% away from overtaking all-time closing highs set in February.
On Wednesday, June E-mini Dow Jones Industrial Average futures settled at 26228, up 527 or +2.01%.
In other news, a spate of grim economic data was not as bad as economists feared, with ADP reporting many fewer private-sector job cuts in May than expected.
Boeing Co. gave the biggest boost to the blue-chip Dow, its shares rising 12.9% following news that billionaire investor Daniel Loeb’s Third Point had taken a stake in the company.
Campbell Soup Co. beat earnings expectations and hiked its full-year forecast, but troubles meeting surging consumer demand sent its shares down 6.1%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 26347 on Thursday will signal a resumption of the uptrend. The main trend will change to down on a move through the last main bottom at 22704.
The minor trend is also up. A trade through 24991 will change the minor trend to down. This will also shift momentum to the downside.
The main range is 29506 to 18086. Its retracement zone at 25144 to 23796 is controlling the longer-term direction of the Dow. The nearest support is the Fibonacci level at 25144.
Short-Term Outlook
If the buying continues then look for the market to grind toward the March 3 main top at 26962.
The uptrend is very strong, but we all know that markets don’t rally forever. This is why we’re also going to be watching for a closing price reversal top. A higher-high, lower-close will form this chart pattern. It won’t change the trend to down, but it will be a sign that the buying is greater than the selling at current price levels.
If confirmed a closing price reversal top could trigger the start of a 2 to 3 day correction.
A bigger concern for stock market bulls will be a close under 25144.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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