Maintain short positions, as the correction is likely incomplete. The E-mini Dow formed a white candle to hand in a 460.22-pt gain, settling at 24,610 pts – marginally above the 200-day SMA line. The index has been hovering around this aforementioned SMA line during recent sessions, but has yet been able to decisively cross above it. All in, the E-mini Dow has likely reached its multi-week rebound’s interim top at 27,624 pts on 9 Jun, and is now in the process of correcting said upward move. We maintain our negative trading bias.

We recommend that traders stay in short positions. We initiated these at 25,165 pts, which was the closing level of 11 Jun. We revise our stop-loss to above the 27,000-pt threshold.

The immediate support is revised to 25,800 pts, and followed by the 25,000-pt round figure. Moving up, the immediate resistance is now pegged at 26,779 pts, or the high of 16 Jun, and followed by the 27,000-pt mark.

Source: RHB Securities Research - 22 Jun 2020