E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Watch 35580 After Apple Reports

December E-mini Dow Jones Industrial Average futures are trading higher shortly before the close on Thursday after recovering from yesterday’s steep sell-off. Strong earnings results from Caterpillar and Merck helped set the tone early in the session. Traders are now awaiting results from Apple after the close.

At 19:13 GMT, December E-mini Dow Jones Industrial Average futures are trading 35510, up 121 or +0.34%.

In stock related news, Caterpillar Inc added 3.43% after reporting a better-than-expected quarterly profit on rising commodity prices, while a forecast raise by drugmaker Merck & Co Inc helped its shares gain 3.37%. Ahead of its earnings report, Apple is trading $152.40, up 2.38%.

In economic news, Investors shrugged off a disappointing report on U.S. economic growth. GDP growth for the third-quarter came in at 2.0%, below the 2.8% expected. The reading marks a slowdown from 6.7% growth in the second quarter.

On a more positive note for the economy, weekly initial jobless claims came in at 281,000. Economists surveyed by Dow Jones were expecting 289,000 claims.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 35777 will signal a resumption of the uptrend. The main trend will change to down on a trade through 33984.

The key level to watch on Friday will be 35557. This is last week’s close.

The minor range is 35777 to 35383. Its 50% level or pivot is 35580. This level provided resistance earlier in the session.

The short-term range is 33984 to 35777. If the downside pressure resumes then its retracement zone at 34881 to 34669 will become the primary downside target.

Short-Term Outlook

The direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to 35580.

Bearish Scenario

A sustained move under 35580 will indicate the presence of sellers. If this move creates enough downside momentum then look for sellers to go after the former record high at 35429, followed by the low of the week at 35383.

Taking out 35383 will indicate the selling pressure is getting stronger. This could trigger an acceleration to the downside with 34881 the next major downside target.

Bullish Scenario

A sustained move over 35580 will signal the presence of buyers. This could fuel a surge into 35777. Overtaking this level could trigger an acceleration to the upside.