June E-mini Dow Struggling to Build Support Base at 33750 – 33357
June E-mini Dow Jones Industrial Average futures are edging lower in a tight overnight trading range on Friday. The price action reflects an overall soft-tone in the stock market led by weakness in the technology sector, which retreated following disappointing earnings from Amazon and Apple.
Early Stock Performances
Adding to the Dow’s early weakness is a more than 2% drop in shares of Apple in pre-opening trading. Dow component Apple initially got a lift after a big earnings beat but turned lower after CFO Luca Maestri said supply chain constraints could hinder fiscal third-quarter revenue.
Intel, another Dow constituent, also reported earnings Thursday evening. The stock fell more than 3% in extended trading after the company issued weak guidance for its fiscal second quarter.
Looking Ahead …
On Friday, investors will get the opportunity to react to fresh data on personal consumption expenditures (PCE). Core PCE is the Federal Reserve’s primary inflation gauge. Additionally, the University of Michigan’s consumer sentiment index is also due out at 14:00 GMT.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum shifted slightly to the upside on Thursday.
A trade through 33015 will signal a resumption of the downtrend. A move through 35413 will change the main trend to up.
The minor trend is also down. A trade through 34038 will change the minor trend to up. This will confirm the shift in momentum.
On the downside, the nearest support is a short-term 50% level at 33750, a minor pivot at 33527 and a short-term Fibonacci level at 33357.
On the upside, the nearest resistance is a pivot at 34214 and the main retracement zone at 34397 to 34942.
Daily Swing Chart Technical Forecast
The direction of the June E-mini Dow on Friday will be determined by trader reaction to the 50% level at 33750.
A sustained move over 33750 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into the minor top at 34038.
Overtaking 34038 will shift momentum to the upside with 34397 the next key target.
Since the main trend is down, sellers could try to stop the rally between 34214 and 34397.
A sustained move under 33750 will signal the presence of sellers. The first downside target is 33527, followed by 33357.
The selling pressure could start to open up under 33357, leading to a potential acceleration to the downside under 33015.