E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 3, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Investors are reacting to a bearish manufacturing report from China, a stronger Japanese Yen and a weaker U.S. Dollar.

The main trend is down according to the daily swing chart. The downtrend will resume on a trade through 17568.

The main range is 17299 to 18083. Its retracement zone is 17691 to 17598. This zone provided support on Friday and Monday and is currently being tested.

The intermediate range is 18083 to 17568. Its retracement zone at 17826 to 17886 is the primary upside target. The lower level of this zone stopped the rally on Monday.

The short-term range is 18006 to 17568. Its retracement zone is 17787 to 17839. This zone provided resistance on Monday and earlier today.

Based on the current price at 17677, the direction of the market the rest of the session is likely to be determined by trader reaction to the main 50% level at 17691.

A sustained move over 17691 will indicate that buyers are coming in to support the market. The daily chart indicates there is room to the upside with potential targets at 17787 and 17795.

Taking out 17795 will be a sign of strength, but the rally could be labored because of a series of potential resistance levels at 17826, 17839 and 17886.

The Fib level at 17886 is the trigger point for an acceleration into 17939.

A sustained move under 17691 will signal the presence of sellers. This could create enough downside momentum to challenge minor angles at 17632 and 17600. This is followed by the main Fib level at 17598 and the minor bottom at 17568.

The downtrend will resume on a trade through 17568 with the next move likely to lead to a test of 17515. This is the last major support angle.

Watch the price action and read the order flow at 17691. Trader reaction to this level will tell us if the selling pressure is strong enough to continue the break.