E-mini Dow Jones Industrial Average (YM) Futures Analysis – April 26, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are called higher based on the early futures trade. The Dow is also getting a boost from a drop in the 10-year Treasury yield and a better-than-expected Durable Goods report. Investors are also reacting to earnings reports. Traders could also be positioning themselves ahead of Friday’s U.S. GDP report.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Yesterday, the Dow crossed to the weak side of a key retracement zone, shifting momentum to the downside, but buyers came in to stop the move, helping to form a closing price reversal bottom.

The closing price reversal bottom was confirmed earlier today when buyers took out 24108. The chart indicates the buying is greater than the selling at current price levels.

A trade through 23782 will negate the reversal bottom and shift momentum to the downside. Today is the seventh day down from the last top so the index is in the window of time for a closing price reversal bottom. However, since it occurred yesterday, we could see the start of a 2 to 3 rally.

The main range is 23306 to 24827. Its retracement zone at 24067 to 23887 is support.

The new short-term range is 24827 to 23782. If today’s rally continues then its retracement zone at 24305 to 24428 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to the 50% level at 24067.

A sustained move over 24067 will signal the presence of buyers. This could trigger a fast move into a Fibonacci level at 24157. This is a potential trigger point for an acceleration into the primary upside target at 24305 to 24428.

A sustained move under 24067 will indicate the presence of sellers. This move could trigger an acceleration into the Fibonacci level at 23887.

If 23887 fails then sellers are likely to go after 23782. This is a potential trigger point for an acceleration to the downside.

The daily chart still indicates the way of least resistance is down. Any rally is likely to be labored because of the large number of potential resistance levels.