Technical Analysis

Dow Jones Futures (YM) Needs To Catch Up!


The Dow Jones futures (YM) have lagged behind the other indices in 2024. The industrial average has still put in some good gains, up 11% for the past year but only 2.9% YTD. The S&P 500 (ES) is up 22% for the past year. Do we think its time for the Dow to catch up?

Dow Jones futures daily chart with moving average cross and possible bullish momentum.

Technical Analysis

Looking at the daily chart, there are a few bearish and a few bullish signs we need to take note of. First being the bearish cross of the 50 SMA over the 100. This is nothing to worry about in the short term because moving averages are lagging indicators which mean they are not accurate on short term price movements.

The bullish feature on the chart right now is the candlestick from yesterday’s (11 June) session. If today we see close above yesterday’s high, it could be a signal to take a long trade with the hopes of a bullish move to the next resistance at $40,000.

This trade has a great risk-reward ratio because the top could be placed at the close of yesterday’s session, around $38,500.

As always, keep focused on risk management and thinking in probabilities!