Lending reports

E-mini Dow Flatlining on 50% level ahead of earnings reports

E-mini Dow Jones Industrial Average June futures are up early Tuesday after posting a mixed trade, lower at the close of the previous session. Blue chip stocks were choppy on Monday as investors pitted positive Bank of America earnings against soaring bond yields ahead of new earnings hints this week.

As of 0500 GMT, June E-mini Dow Jones Industrial Average futures are trading at 34418, up 105 or +0.31%. On Monday, the SPDR Dow Jones Industrial Average ETF settled at $344.12, down $0.17 or -0.05%.

Monday recap

Bank of America closed the major Wall Street banking earnings season, reporting strong growth in its consumer finance business, although its investment banking unit was hit by a slowdown in transactions.

The BoA news translated into strong gains for financial stocks and Dow constituents Goldman Sachs, JPMorgan Chase and American Express which rose 2.56%, 1.86% and 1.83% respectively.

Rising crude oil prices helped lift shares of Chevron Corp 1.34%, while the technology sector was supported by Microsoft which gained 0.25%.

Looking forward…

Investors are bracing for a slew of earnings that will help them gauge the impact of war in Ukraine and a spike in inflation on corporate finances. Dow Johnson & Johnson Components and International Business Machines are both expected to report this week.

Dow Jones Industrial Average June Daily E-mini

Daily Swing Chart Technical Analysis

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

The minor trend is also down. A trade through 34794 will change the minor uptrend. This will shift the momentum up.

The main range is 36708 to 32086. The market is currently straddling its 50% level at 34397.

The short-term range is 32086 to 35281. Its retracement zone at 33678 to 33301 is the closest support.

Daily Swing Chart Technical Forecast

The direction of the E-mini Dow Jones Industrial Average for June on Tuesday will likely be determined by traders’ reaction to the 50% level at 34397.

Bullish scenario

A sustained move above 34397 will indicate the presence of buyers. If this move starts to attract buyers, expect the rally to eventually extend to the minor top at 34794, the main top at 34820 and the main Fibonacci level at 34942.

Downside scenario

A sustained move below 34397 will signal the presence of sellers. If this move generates enough downward momentum, expect the move to eventually extend into the minor low at 34002.

Exiting 34002 will indicate that the selling pressure is building. This could trigger a new breakout at the short-term retracement area between 33678 and 33301.

Watch for a technical bounce off the first test of this retracement zone. Countertrend bulls could try to form a potentially bullish secondary upper floor. If 33301 fails as support, look for downward acceleration with 32578 as the first major target.