June E-Mini Dow Pressured by Mixed Chase Earnings Data

June E-mini Dow Jones Industrial Average futures are attempting to rebound on Wednesday following a volatile two-sided trade and lower close the previous session. The price action suggests investors are attempting to look past the highest consumer inflation numbers in decades and focus on the start of first quarter earnings reporting season.

At 12:03 GMT, the June E-mini Dow futures contract is trading 34176, up 37 or +0.11%. On Tuesday, the SPDR Dow Jones Industrial Average ETF (DIA) settled at $342.19, down $1.01 or -0.29%.

Earnings Season Begins with Results from JPMorgan Chase

First quarter earnings reporting season kicked off Wednesday and analysts have tempered their expectations amid rising commodity costs, the war in Ukraine and the lingering pandemic.

As far as Dow component stocks are concerned, JPMorgan Chase shares were slightly lower in premarket trading after the bank reported mixed results. JPMorgan reported a $524 million hit in the quarter following market upheavals related to Russia sanctions that lowered earnings per share by 13 cents. But JPMorgan managed to report $31.59 billion in revenue for the period, slightly more than expected by analysts. It also reported a new $30 billion buyback program.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 34002 will signal a resumption of the downtrend. A move through 34820 will change the main trend to up.

The market is also trading on the strong side of its main retracement zone at 34397 to 34942, making it resistance.

The short-term range is 32086 to 35281. Its retracement zone at 33684 to 33306 is the primarily downside target.

Daily Swing Chart Technical Forecast

The direction of the June E-mini Dow Jones Industrial Average futures contract Wednesday is likely to be determined by trader reaction to 34397.

Bearish Scenario

A sustained move under 34397 will indicate the presence of sellers. Taking out 34002 will indicate the selling pressure is getting stronger. This could trigger a further break into the short-term retracement zone at 33684 to 33306.

Watch for a technical bounce on the first test of 33684 to 33306. If 33306 fails then look for the start of an acceleration to the downside with 32578 the next likely target.

Bullish Scenario

A sustained move over 34397 will signal the presence of buyers. If this generates enough upside momentum then look for a surge into the main top at 34820.

Taking out 34820 will change the main trend to up, but sellers could reemerge on a test of 34942 to 35015.