E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 28, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. The sharp sell-off has helped form a new secondary lower top at 18006. The Dow is also in a position to take out a swing bottom and turn the main trend to down.

The main trend is up according to the daily swing chart. The trend will turn down on a trade through 17773. A trade through 18006 will signal a resumption of the uptrend.

The main range is 17299 to 18083. Its retracement zone at 17691 to 17598 is the primary downside target.

The intermediate range is 17396 to 18083. Its retracement zone at 17740 to 17658 is another potential downside target.

The short-term range is 18083 to 17773. Its retracement zone at 17928 to 17965 essentially stopped the rally yesterday although the Dow did reach 18006.

Based on the current price at 17831, look for a bearish tone today as long as the Dow stays under the downtrending angle at 17891.

Overtaking 17891 will signal the return of buyers with the next target the short-term 50% level at 17928, the short-term Fibonacci level at 17965 and the downtrending angle at 17987.

Overcoming 17987 will lead to a test of 18006 and a downtrending angle at 18035. This is the last potential resistance angle before the 18083 main top.

A sustained move under 17891 will indicate the presence of sellers. The daily chart is wide open to the downside. The first target is the intraday low at 17783. This is followed by a main bottom at 17773.

Taking out 17773 will change the main trend to down. A move through this level is likely to lead to a labored break because of a series of potential support levels at 17740, 17691, 17683, 17658 and 17636.

The market will open up to the downside under 17636 with the next target 17598. Look for an even steeper break under 17598 with the next target angle 17491.

Look for a bearish tone all day as long as the Dow remains under 17891. An upside bias could develop on a sustained move over this angle.