E-mini Dow carried higher by a strong banking sector

June E-mini Dow Jones Industrial Average futures closed higher on Friday, boosted by a jump in bakery stocks at the end of a volatile week marked by concerns over an aggressive move by the US Federal Reserve to rein in almost uncontrollable inflation.

Rate-sensitive lenders and constituents of the Dow Goldman Sachs Group Inc and JPMorgan Chase & Co rose 2.3% and 1.83%, respectively. Other finance-related stocks also improved with American Express up 0.72% and Visa Inc up 0.38%.

On Friday, June 6, the E-mini Dow Jones Industrial Average futures contract settled at 34,613, up 123 or +0.36%. The SPDR Dow Jones Industrial Average ETF (DIA) ended at $347.38, up $1.41 or +0.41%.

Bank stocks were supported by the benchmark 10-year Treasury note, which hit its highest level since March 2019.

Major U.S. banks, which kick off the first-quarter earnings season this week, are expected to post a sharp drop in profits from a year earlier, when they benefited from exceptionally strong deals and transactions, and funds put in aside for loan losses. .

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 the upside. 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 controls the short-term direction of the market.

The short-term range is 32086-35281. Its retracement zone at 33684-33306 is the main downside target and potential support.

Short-term outlook

The direction of the June E-mini Dow Jones Industrial Average early Monday will likely be determined by how traders react to 34397.

Bullish scenario

A sustained move above 34397 will indicate the presence of buyers. If this move creates enough bullish momentum, look for a push towards the 34942 Fibonacci level.

Breaking above 34942 could trigger a break above 35015, turning the main trend higher with 35281 as the next target.

Downside scenario

A sustained move below 34397 will signal the presence of sellers. This could trigger a break in the main trough at 34093.

Exiting 34093 will indicate that the selling pressure is building. This could trigger an acceleration into 33684 to 33306. Watch for aggressive countertrend buyers in the first test of this zone.