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June E-mini Dow Jones Industrial Average futures are trading lower late in the session on Thursday after reports that President Joe Biden is slated to propose much higher capital gains taxes for the rich.

At 19:43 GMT, June E-mini Dow Jones Industrial Average futures are at 33725, down 291 or -0.86%.

Bloomberg News reported Thursday afternoon that Biden is planning a capital gains tax hike to as high as 43.4% for wealthy Americans. The proposal would hike the capital gains rate to 39.6% for those earnings $1 million or more, up from 20% currently, according to Bloomberg News, citing people familiar with the matter. Reuters and the New York Times later matched the headlines.

Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. A trade through 34144 will signal a resumption of the uptrend. A move through 31951 will change the main trend to down.

The minor trend is down. This is controlling the momentum. A trade through 33572 will indicate the selling pressure is getting stronger. Taking out 34066 will change the minor trend to up.

The minor range is 34144 to 33572. The Dow is trading on the weak side of its pivot at 33858.

The second minor range is 33157 to 34144. Its pivot at 33651 is currently being tested. It has acted like support the last three days.

The main range is 31951 to 34144. Its 50% level at 33048 is the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average into the close on Thursday is likely to be determined by trader reaction to the pivot at 33651.

Bearish Scenario

A sustained move under 33651 will indicate the presence of sellers. This is followed by 33572, a potential trigger point for an acceleration to the downside with 33048 the next major downside target.

Bullish Scenario

A sustained move over 33651 will signal the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the minor pivot at 33858.

For a look at all of today’s economic events, check out our economic calendar.