E-mini Dow Jones Industrial Average (YM) Futures Analysis – Money Could Be Moving From Tech to Blue Chip Dow Stocks

Like the other major indexes, the June E-mini Dow Jones Industrial Average futures contract is posting a two-sided trade on Wednesday. However, the Dow is performing better because of its limited exposure to technology shares. We may be also witnessing a rotation out of technology stocks and into blue chip shares due to the elevated prices in Facebook, Amazon, Netflix and Google to name a few.

At 1726 GMT, the June E-mini Dow Jones Industrial Average futures contract is trading 23918, up 59 or +0.25%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 23496 will signal a resumption of the downtrend.

The intermediate range is 23122 to 25832. Its retracement zone at 24157 to 24477 is acting like resistance.

The short-term range is 25535 to 23496. Its retracement zone is 24516 to 24756.

Combining the intermediate and short-term retracement zones creates a resistance cluster at 24477 to 24516. This is the key area to overcome for the bulls.

The main range is 26723 to 23122. Its retracement zone at 24923 to 25347 is the primary upside target. Since the main trend is down, sellers may show up on a successful test of this area.

Daily Swing Chart Technical Forecast

Based on the early price action, we could look at continued consolidation inside 24157 and 23496. It all depends on what investors decide to do. If they are content then they’ll hold prices in a range.

Bullish traders may make a run at 24157. Overcoming this Fib level late in the session could generate the momentum needed to challenge 24477 to 24516.

If bearish traders decide to take control then they’ll try to trigger sell stops under 23496. This is a potential trigger point for an acceleration into 23122.