E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding 33858 Pivot Fueling Upside Bias

June E-mini Dow Jones Industrial Average futures are edging higher during the pre-market session on Monday, suggesting investor optimism ahead of the start of a busy week that includes several major quarterly earnings reports, key U.S. economic reports, a two-day Federal Reserve meeting and interest rate decision.

At 07:08 GMT, June E-mini Dow Industrial Average futures are trading 33975, up 34 or +0.10%.

The week’s quarterly earnings reports include Dow components Microsoft and Apple. Expectations for company results have steadily gained in recent weeks as opposed to a typical decline as earnings season approaches. First-quarter earnings are expected to jump 33.9% from a year ago, the highest quarterly rate since the fourth quarter of 2010, according to IBES Refinitiv data.

Later today at 12:30 GMT, the U.S. will release reports on Core Durable Goods Orders and Durable Goods Orders. Both are expected to come in better than the previous month.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through 34144 will signal a resumption of the uptrend. The main trend will change to down on a trade through 31951.

The minor trend is down. A trade through 34066 will change the minor trend to up. A move through 33572 will indicate the selling pressure is getting stronger.

The minor range is 34144 to 33572. The E-mini Dow is currently trading on the strong side of its pivot at 33858.

The second minor range is 33157 to 34144. Its pivot at 33651 is support. This level stopped the selling four times last week.

The short-term range is 31951 to 34144. If the minor downtrend resumes then its 50% level at 33048 will become the primary downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average on Monday is likely to be determined by trader reaction to the pivot at 33858.

Bullish Scenario

A sustained move over 33858 will indicate the presence of buyers. If the move generates enough upside momentum then look for the rally to possibly extend into the minor top at 34066. Taking out this level could fuel a drive into the main top at 34144.

Bearish Scenario

A sustained move under 33858 will signal the presence of sellers. The first downside target is 33651. We could get a technical bounce on the first test of this level, but if it fails then look for the selling to possibly extend into 33572. This is a potential trigger point for an acceleration to the downside with 33048 the next potential downside target.

For a look at all of today’s economic events, check out our economic calendar.