E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Caution Ahead of Apple Earnings, Fed

March E-mini Dow Jones Industrial Average futures are edging lower early Wednesday as investors continued to pore over earnings results from Microsoft, released after the close the previous session. Meanwhile, a cautious tone is developing ahead of the release of earnings from Apple, Facebook and Tesla later in the day and the latest monetary policy statement from the U.S. Federal Reserve.

At 07:20 GMT, March E-mini Dow Jones Industrial Average futures are trading 30803, down 39 or -0.13%.

Microsoft dominated the trading action in the extended session on Tuesday. Investors appeared pleased with the company’s performance in its fiscal second quarter, when it grew revenues 17% on a year-over-year basis. Adding to the optimism of Microsoft’s profit report was a jump in the company’s Intelligent Cloud unit, a segment investors think critical to the company’s future success.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Monday when sellers took out the previous main bottom at 30506. A move through 30457 will signal a resumption of the downtrend. The main trend will change back to up on a trade through 31188.

The first minor range is 31188 to 30457. The E-mini Dow is straddling its 50% level at 30823 for a third session. Trader reaction to this level could set the tone on Wednesday.

The second minor range is 29760 to 31188. Its 50% level at 30475 is support. This level stopped the selling on Monday.

The short-term range is 29318 to 31188. If the downtrend continues then its 50% level at 30253 will become the next downside target level.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average early in the session on Wednesday is likely to be determined by trader reaction to the pivot at 30823.

Bullish Scenario

A sustained move over 30823 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to extend into the record high at 31188. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 30823 will signal the presence of sellers. This could trigger a quick break into a series of potential levels at 30474, 30457 and 30253. The latter is a potential trigger point for an acceleration to the downside with 29760 the first target.