E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Inside Window of Time for Short-Term Top
June E-mini Dow Jones Industrial Average futures surged to a record level on Thursday after several major companies reported strong earnings and robust economic data pointed to a rebound in consumer spending and an improving jobs market.
At 20:19 GMT, June E-mini Dow Jones Industrial Average futures are trading 33919, up 295 or +0.88%. This marked the first-time the blue-chip benchmark has crossed the 34,000 milestone.
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In economic news, retail sales surged 9.8% in March as additional stimulus sent consumer spending soaring, the Commerce Department reported Thursday. That number topped the Dow Jones estimate of a 6.1% gain.
Another report released on Thursday showed that first-time filings for unemployment insurance dropped to the lowest level since March 2020. The Labor Department reported 576,000 new jobless claims for the week ended April 10. Economists polled by Dow Jones expected a total of 710,000.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was confirmed when buyers took out Wednesday’s high at 33800.
The main trend will change to down on a trade through the nearest main bottom at 31951. This is highly unlikely, but since the Dow is up 14 sessions from this main bottom, it is vulnerable to a potentially bearish closing price reversal top.
A closing price reversal top won’t change the main trend to down, but if formed then confirmed, it could trigger the start of a 2 to 3 day correction. Sometimes, it even retraces at least 50% of the current rally. The current range is 31951 to 33962. This makes 32957 a key 50% level to watch. This level will continue to rise as the market moves higher.
The minor range is 33157 to 33962. Its 50% level at 33560 is a potential downside target.
Short-Term Outlook
There is no resistance so we’re going to continue to watch for a closing price reversal top to tell us the selling is greater than the buying at current price levels.