Dow Jones Industrial Average futures are trading higher shortly after
the cash market opening on Monday, boosted by shares tied to the
economic reopening. Dow components Disney, Caterpillar and Travelers
Companies were all up about 1%.
Another component, Verizon, rose 0.9% after the telecom giant said
it will sell its media group to private equity firm Apollo Global
Management for $5 billion. The sale allows Verizon to offload properties
from the former internet empires of AOL and Yahoo.
In economic news, U.S. Final Manufacturing PMI came in at 60.5, missing the 60.7 forecast and 60.6 previous reading.
Technical Analysis
The main trend is up according to the daily swing chart. 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. A trade through 34066 will change the minor trend to up.
The first minor range is 34144 to 33572. The Dow is currently trading on the bullish side of its pivot at 33858.
The second minor range is 33157 to 34144. Its 50% level at 33651 is
support. It is also a potential trigger point for an acceleration to
the downside.
The main range is 31951 to 34144. Its 50% level at 33048 is major support.
The direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to 33858.
A sustained move over 33858 will indicate the presence of buyers.
The first upside target is the minor top at 34066, followed by the main
top at 34144. The latter is a potential trigger point for an
acceleration to the upside.
A sustained move under 33858 will signal the presence of sellers.
This could trigger a break into the second pivot at 33651, followed by
the minor bottom at 33572. The latter is a potential trigger point for
an acceleration to the downside.
The daily chart indicates there isn’t much support under 33572 with 33048 the next potential downside target.
