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June E-mini Dow Jones Industrial Average futures closed higher on Friday, boosted by a jump in baking stocks at the end of a volatile week marked by concerns around aggressive move by the U.S. Federal Reserve to tame nearly out of control inflation.
Rate-sensitive lenders and Dow components Goldman Sachs Group Inc and JPMorgan Chase & Co rose 2.3% and 1.83%, respectively. Other financial related stocks also improved with American Express up 0.72% and Visa Inc gaining 0.38%.
On Friday, June E-mini Dow Jones Industrial Average futures settled at 34613, up 123 or +0.36%. The SPDR Dow Jones Industrial Average ETF (DIA) finished at $347.38, up $1.41 or +0.41%.
The banking stocks were supported by the benchmark 10-year Treasury note, which hit its highest level since March 2019.
Big U.S. banks, which kick off the first quarter results season this week, are expected to show a sharp decline in earnings from a year earlier, when they benefited from exceptionally strong deal-making and trading, and funds set aside for loan losses being released.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 35015 will change the main trend to up. A move through 34093 will signal a resumption of the downtrend.
The main range is 36708 to 32086. The E-mini Dow settled inside its retracement zone at 34397 to 34942. This zone is controlling the near-term direction of the market.
The short-term range is 32086 to 35281. Its retracement zone at 33684 to 33306 is the primary downside target and potential support.
Short-Term Outlook
The direction of the June E-mini Dow Jones Industrial Average early Monday is likely to be determined by trader reaction to 34397.
Bullish Scenario
A sustained move over 34397 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into the Fibonacci level at 34942.
Overtaking 34942 could trigger a breakout over 35015, turning the main trend to up with 35281 the next target.
Bearish Scenario
A sustained move under 34397 will signal the presence of sellers. This could trigger a break into the main bottom at 34093.
Taking out 34093 will indicate the selling pressure is getting stronger. This could trigger an acceleration into 33684 to 33306. Watch for aggressive counter-trend buyers on the first test of this zone.
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This article was originally posted on FX Empire