The Dow Jones 30 Futures (CME: YM) opened the week rangebound as volumes remained flat to lower, with traders anticipating lofty U.S. economic data. This comes after a four-week winning streak that led to gains of 5.85%.

The inflation-sensitive markets now await U.S. Labour Market reports, which will give a glimpse of the consumer spending trend, along with the services and manufacturing PMIs revealing the strength of the U.S. economy.

Technical

The Dow Jones 30 Futures have stalled the four-week winning streak, with price now consolidating in a rectangle pattern. The market forged support and resistance at the 33495 and 34341 levels, respectively.

With bulls and bears in balance, a high volume breakout to either side of the consolidation pattern could validate an extended move in the direction of the breakout. A breakout below the pattern could leave bears foraging for support at the 33495 level, while a breakout above the pattern leaves the 34341 level earmarked as a probable level of interest for bullish traders.

With price consolidating nearer to resistance, bullish momentum could build up to send the index beyond the 34341 level, leaving 2022’s final quarter highs in sight at the 35211 level.

Summary

The U.S. economy has shown signs of moderation in the past weeks, and if the latest data follows suit, the Dow Jones 30 Futures could ride on tailwinds of a probable interest rate peak and Federal Reserve pivot. The consolidation patterns support and resistance at the 33937 and 34209 levels will be the main points traders will monitor as they anticipate the index’s next move.

Sources: Reuters, TradingView