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

September E-mini Dow Jones Industrial Average futures are expected to open lower based on the premarket trade. Investors are reacting to weaker equity markets in Asia and Europe as concerns over the escalating trade war intensifies.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted slightly to the upside with the closing price reversal bottom on Thursday and the subsequent follow-through rally on Friday.

A trade through 23978 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The minor trend is also down. A trade through 24496 will change the minor trend to up and reaffirm the shift in momentum.

The main range is 23500 to 25418. Its retracement zone at 24459 to 24233 is controlling the near-term direction of the Dow.

The short-term range is 25418 to 23978. Its retracement zone at 24698 to 24868 is a potential upside target.

Daily Technical Forecast

Based on the early trade, the direction of the Dow the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 24156.

A sustained move under 24156 will indicate the presence of sellers. This could lead to a test of 23978. Taking out this level will reaffirm the downtrend with an uptrending Gann angle at 23828 the next target.

If 23828 fails as support then look for the selling pressure to extend into the next uptrending Gann angle at 23664. This is the last potential support angle before the 23500 main bottom.

Overcoming and sustaining a rally over 24156 will signal the return of buyers. This could lead to a test of the Fibonacci level at 24233.

Overtaking 24233 will indicate the buying is getting stronger. This could trigger a rally into a resistance cluster formed by a downtrending Gann angle at 24458 and the main 50% level at 24459. Since the trend is down, look for sellers to come in on a test of this area.

The critical point on the upside is 24459. Taking out this level with conviction could trigger an acceleration to the upside.

Looking at the bigger picture, look for a downside bias on a sustained move under 24233 and for an upside bias to develop on a sustained move over 24459.