E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 29, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market session. The market posted an inside range during the early session which indicates investor indecision and impending volatility.

The main trend is down according to the daily swing chart. The trend turned down on Thursday on a trade through the 17773 swing bottom.

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

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

These two retracement zone overlap, making the best target area a combination of a 50% and Fibonacci level at 17691 to 17658 respectively.

Uptrending Gann angles at 17699 and 17652 pass through the retracement zones, making them potential downside targets also.

Based on the close at 17775 and the early price action, the direction of the market today is likely to be determined by trader reaction to the short-term 50% level at 17740.

A sustained move under 17740 will indicate the presence of sellers. Any sell-off is likely to be labored because of a string of possible support levels and price clusters. These include 17699, 17691 and 17682.

A break under 17682 could signal a further decline into 17658 and 17652.

The daily chart opens up to the downside under 17652 with the next target the major Fib level at 17598. This is followed by an uptrending angle at 17499.

Holding above 17740 will indicate that aggressive counter-trend buyers are coming in to support the market. This could create enough upside momentum to challenge the next downtrending Gann angle at 17859.

Watch the price action and read the order flow at 17740 all session. Trader reaction to this level will tell us if buyers are coming in or if the selling pressure is increasing. Watch for a labored break until 17652 is taken out. This is the trigger point for a steep sell-off.