June E-mini Dow Jones Industrial Average futures are trading slightly lower during the pre-market session early Tuesday as investors await direction from Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen later in the day. Both are scheduled to make their first joint appearance before the U.S. House Committee on Financial Services. The discussion will center on the oversight of the Treasury’s and Federal Reserve’s pandemic response.
At 03:18 GMT, June E-mini Dow Jones Industrial Average futures are trading 32577, down 42 or -0.13%.
On Monday, Dow futures closed higher as the 10-year Treasury yield retreated after touching a 14-month high last week. A rise in technology shares, led by Tesla’s 5.5% jump, also underpinned the blue chip average.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on March 18.
A trade through 33116 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a trade through 30429.
The minor trend is also up. A trade through 31613 will change the minor trend to down. Taking 32688 will make 32314 a new minor bottom.
On the upside, the 50% level at 32715 is the first resistance.
On the downside, the 50% level at 32365 is the first support. This is followed by 31773 and the main retracement zone at 31283 to 30850.
Daily Swing Chart Technical Forecast
The early price action suggests the direction of the Dow futures contract will likely be determined by trader reaction to 32715.
A sustained move under 32715 will indicate the presence of sellers. The first downside targets are the pivot at 32365 and Monday’s low at 32314.
The daily chart indicates there is plenty of room to the downside under 32314. This could trigger an acceleration to the downside with 31773 the next likely downside target.
A sustained move over 32715 will signal the presence of buyers. This could create the upside momentum needed to trigger an acceleration into the record high at 33116.
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