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June E-mini Dow Jones Industrial Average futures are drifting lower late in the session on Tuesday as investors eyed tomorrow’s interest rate, monetary policy decisions and post-meeting comments from the Federal Reserve.

According to CNBC, despite the recent records set by the major averages, there’s growing concern among investors that interest rates may continue to climb, snuffing out the comeback for equities. Traders will get more guidance from the Federal Reserve on rates and inflation on Wednesday. The central bank kicks off its two-day meeting on Tuesday, followed by a statement and briefing from Chairman Jerome Powell the following day.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing, but the upside momentum is being threatened by a potentially bearish closing price reversal top. Late in the session, a trade through 32865 will reaffirm the uptrend.

The main trend changes to down on a trade through 30429. This is highly unlikely but due to the prolonged move up in terms of price and time, the Dow is ripe for a closing price reversal top.

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.

The first minor range is 31613 to 32865. Its 50% level at 32239 is the first downside target.

The second minor range is 30429 to 32865. Its 50% level at 31647 is the second downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average into the close on Tuesday will be determined by trader reaction to 32850.

Bullish Scenario

A sustained move over 32850 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at the intraday high at 32865. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 32850 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first minor 50% level at 32239.

A close under 32850 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction with potential downside targets 32239 and the support cluster at 31647 to 31613.