June E-mini Dow Jones Industrial Average futures are edging higher during Monday’s pre-market session. The early price action suggests today could be a “risk-off” session. Buyers are being encouraged by a slight dip in U.S. Treasury yields.
On Friday, the 10-year U.S. Treasury note yield hit its highest level in more than a year. The benchmark Treasury note reached 1.642%, its highest level since February 2020. The move indicates that investors are starting to accept the fact that the economy is getting stronger and that interest rates will rise accordingly to ward off the potentially harmful effects of higher inflation.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out Friday’s high.
A trade through 30429 will change the minor trend to down. This is highly unlikely, however, the Dow is up seven sessions from its last main bottom, which puts it inside the window of time for a closing price reversal top. This chart pattern won’t change the main trend to down, but if confirmed, it could trigger the start of a 2 to 3 day correction.
The minor trend is also up. A trade through 31613 will change the minor trend to down. This will also shift momentum to the downside.
Daily Swing Chart Technical Forecast
The early price action suggests the direction of the June E-mini Dow Jones Industrial Average will be determined by trader reaction to 32665.
A sustained move over 32665 will indicate the presence of buyers. The first target is the intraday high at 32797. There is no resistance at current price levels.
A sustained move under 32665 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the minor 50% level at 32205. This level will move up as the market moves higher.
A close under 32665 will form a closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction.