E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 2, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open lower as investors react to new tariffs from China and the possible start of a trade war.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade though 23496 will signal a resumption of the downtrend with the bottom at 23122 the next downside target.

The minor trend is also down. A trade through 24435 will indicate a possible shift in momentum to the upside.

The short-term range is 23496 to 24435. Its 50% level or pivot is 23966. This price is controlling the direction of the market today.

Additional resistance zone resistance is layered at 24157, 24477, 24517 and 24756.

Daily Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to 23966.

A sustained move over 23966 will signal the presence of buyers. This could create a labored rally with potential targets a Fib level at 24157, an uptrending angle at 24306, a pair of 50% levels at 24477 and 24516 and a downtrending Gann angle at 24639.

A sustained move under 23966 will indicate the presence of sellers. This could trigger an acceleration into a pair of Gann angles at 23733 and 23714. Look for a technical bounce on the first test of 23714.

If it fails then look for the selling to extend into 23496, 23418 and 23270. The latter is the last potential support angle before the 23122 main bottom.

Watch the price action and order flow on a test of 23966. Trader reaction to this level will set the tone for the day.