E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 26, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are trading slightly higher shortly before the cash market opening. The market is also trading inside yesterday’s range. This could be an early indication of investor indecision.

The main trend is up according to the daily swing chart. The main trend was reaffirmed on Wednesday when the May 10 main top at 17864 was taken out. The break back under it, however, suggests that perhaps the move was triggered by protective buy stops rather than aggressive buying. Anyone who bought strength above this level is trapped and may be forced to sell if the market weakens further. This could trigger an acceleration to the downside.

The main range is 18083 to 17297. Its retracement zone is 17690 to 17783. Look for an upside bias as long as the Dow remains above this zone. The 50% level at 17690 and the 61.8% level at 17783 should be treated as support today.

Based on the current price at 17834, the direction of the market today is likely to be determined by trader reaction to two levels.

A sustained move over the downtrending angle at 17875 will indicate the presence of buyers. This could trigger an acceleration to the upside with the next target angle coming in at 17979. This is the last potential resistance angle before the 18083 main top.

A sustained move under the Fibonacci level at 17783 will signal the presence of sellers. This could trigger an acceleration into the 50% level at 17690. This is followed closely by a steep uptrending angle at 17617.

Look for a technical bounce on the first test of the angle at 17617. If it fails then we could see a sharp plunge since the next angle doesn’t come in until 17457.

Holding between 17783 and 17875 will strongly support the case for investor indecision. This could lead to a choppy, two-sided trade.