E-Mini Dow Trading on Strong Side of Main Retracement Zone

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening on Wednesday as investors shrugged off disappointing Netflix earnings that pressured the S&P 500 and NASDAQ Composite. Meanwhile, the blue chip average is being underpinned by strong performances by Procter & Gamble and International Business Machines.

At 12:27 GMT, June E-mini Dow Jones Industrial Average futures are trading 34966, up 125 or +0.36%. On Tuesday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $349.14, up $5.04 or +1.47%.

In stock related news, Procter & Gamble’s better-than-expected results sent the stock up about 1%. Procter also hiked its full-year revenue guidance. Shares of IBM, another Dow component, rose more than 1% following a beat on earnings and revenue.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Tuesday when buyers took out the previous main top at 34820. A trade through 34002 will change the main trend to down.

The minor trend is also up. A trade through 34179 will change the minor trend to down and shift momentum to the downside.

The main range is 36708 to 32086. The market is currently inching to the strong side of its retracement zone at 34942 to 34397.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average futures contract on Wednesday is likely to be determined by trader reaction to 34942.

Bullish Scenario

A sustained move over 34942 will indicate the presence of buyers. Taking out the next main top at 35015 will reaffirm the uptrend. This could trigger an acceleration into the March 29 main top at 35281. This is a potential trigger point for an acceleration to the upside with the February 9 main top at 35649 the next target.

Bearish Scenario

A sustained move under 34942 will signal the presence of sellers. If this creates enough downside momentum then we could see a break into the 50% level at 34397.