E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 5, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. Prices appear to be consolidating inside a retracement zone ahead of Friday’s U.S. Non-Farm Payrolls report.

The main trend is down according to the daily swing chart. A trade through 17568 will signal a resumption of the downtrend, however, the Dow is also in the window of time for a closing price reversal bottom so selling weakness could be dangerous.

The main range is 17299 to 18083. Its retracement zone at 17691 to 17598 is currently being tested.

The intermediate range is 18083 to 17568. Its retracement zone at 17826 to 17886 is a potential upside target.

The short-term range is 18006 to 17568. Its retracement zone at 17787 to 17839 is another potential upside target.

Based on yesterday’s close at 17581 and the early price action, the direction of the market today is likely to be determined by trader reaction to the Fibonacci level at 17598.

A sustained move over 17598 will signal the presence of buyers. This could create enough upside momentum to challenge the 50% level at 17691. The next target over this price is a downtrending angle at 17731.

Taking out 17731 could trigger an acceleration to the upside with 17787 the most likely target.

A sustained move under 17598 will indicate the presence of sellers. The first target is last week’s low at 17568, followed closely by a long-term uptrending angle at 17531.

The daily chart opens up to the downside under 17531 with the next target angle coming in at 17415. This is the last potential support angle before the 17299 main bottom.

Watch the price action and read the order flow at 17598 today. Trader reaction to this level will tell us if the bulls or the bears are in control. Volume may be below average today because of tomorrow’s U.S. jobs report so be careful buying strength and selling weakness.