E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 12, 2017 Forecast

June E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Buyers attempted a breakout to the upside but the move failed. Traders appear to be a little indecisive, leading to a directionless market.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower.

A trade through 20356 will change the main trend to down. A move through 20828 will signal a resumption of the uptrend.

The main range is 19654 to 21106. If the selling continues then its retracement zone at 20255 will become the primary downside target.

The intermediate range is 21106 to 20356. Its retracement zone is 20731 to 20820. This zone stopped the rally at 20828 last week.

The short-term range is 20356 to 20828. Its 50% level or pivot is 20592. The market is currently straddling this price. It is controlling the intraday direction of the market.

Forecast

Based on the current price at 20570, the direction of the Dow today is likely to be determined by trader reaction to the short-term pivot at 20592.

A sustained move over 20592 will signal the presence of buyers. This could create the upside momentum needed to challenge the next retracement zone at 20731 to 20820.

A sustained move under 20592 will indicate the presence of sellers. The first target is yesterday’s low at 20448. This is followed by a main bottom at 20356 and a major 50% level at 20255.

Watch the price action and read the order flow at 20592 all session, trader reaction to this level will set the tone for the day.