E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 6, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open lower after spiking through support immediately after the release of the weaker-than-expected U.S. Non-Farm Payrolls report.

The main trend is down according to the daily swing chart. The Dow is in no position to turn the trend up, but today is the 12^th day down from the top which puts it in the window of time for a closing price reversal bottom.

Based on the current price at 17514, the direction of the market the rest of the session is likely to be determined by trader reaction to the uptrending angle at 17539.

A sustained move under 17539 will indicate the presence of sellers. This could trigger an acceleration into the next uptrending angle at 17419. This is the last potential uptrending angle before the 17299 main bottom. Taking out 17299 will put the Dow in an extremely bearish position.

Overcoming 17539 and sustaining the move will signal the presence of buyers. This could create enough upside momentum to challenge the Fibonacci level at 17598. This could trigger an acceleration into a downtrending angle at 17699 and a 50% level at 17691. The trigger point for the best upside breakout today is 17691.

Watch the price action and read the order flow at 17539. Trader reaction to this angle will tell us if the selling is getting stronger or if buyers are coming back in. Be careful selling weakness because of the possibility of a closing price reversal bottom.