fundamental News - DJI5R
Dow Jones Industrial Average futures are trading higher shortly after
the mid-session on Thursday, but struggling to hold on to its earlier
gains. The volatile trading session suggests investors are still on the
fence about what today’s higher-than-expected
consumer inflation report means to the Federal Reserve’s next monetary
policy decision on June 16.
The main trend changes to down on a move through 34310. This could
trigger an acceleration into the minor bottom 34170, followed closely by
the pivot at 34115.
Dow Jones Industrial Average futures are trading 34556, up 119 or +0.35%.
Consumer prices for May increased at their fastest clip in nearly
13 years as inflation pressures continued to accelerate in the U.S.
economy, the Labor Department reported Thursday.
Treasury yields initially moved higher after the report but drifted
lower as morning trading continued. The dip in yields still wasn’t
enough for the Dow to hold on to most of its earlier gains.
Investors have been concerned about whether rising inflation could
see the Federal Reserve taper its asset purchases or start to talk about
raising interest rates. However, the Fed has emphasized that price
pressures are transitory, as the economy reopens
and recovers from the coronavirus pandemic.
Technical Analysis
A trade through 34827 will signal a resumption of the uptrend. A move through 34310 will change the main trend to down.
The direction of the June E-mini Dow Jones Industrial Average into
the close will be determined by trader reaction to the pair of pivots at
34607 and 34499.
A sustained move over 34607 will indicate the presence of buyers.
This could trigger a test of the intraday high at 34733. Taking out this
level could fuel a surge into the pair of main tops at 34825 and 34827.
A sustained move under 34607 will indicate the presence of sellers.
Taking out 34499 will indicate the selling pressure is getting
stronger. This could trigger a test of the intraday low at 34389. Taking
this out will lead to a test of the main bottom
at 34310.
expectation today: bearish