E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 5, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. We could see volatility early with the release of the U.S. ADP Non-Farm Employment Change report at 1215 GMT and the ISM Non-Manufacturing PMI report at 1400 GMT. Later in the session at 1800 GMT, investors will get the opportunity to react to the FOMC Meeting Minutes.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on June 28.

The minor trend is also down. A trade through 24445 will change the minor trend to up. This will be further confirmation of the shift in momentum.

A trade through 24026 will be the first sign of weakness. A move through 23978 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 23500 to 25418. Its retracement zone at 24459 to 24233 is currently being tested. This zone is controlling the near-term direction of the market.

The short-term range is 25418 to 23978. If the minor trend changes to up then its retracement zone at 24698 to 24868 will become the primary upside target.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average the rest of the day will be determined by trader reaction to the downtrending Gann angle at 24330.

A sustained move over 24330 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the minor top at 24445, the 50% level at 24459 and the minor top at 24496. Taking out the latter will indicate the buying is getting stronger. This could trigger an acceleration to the upside with a 50% level at 24698 the next target.

A sustained move under 24330 will signal the presence of sellers. This could trigger a quick test of the Fibonacci level at 24233, followed by the uptrending Gann angle at 24188.

The Gann angle at 24188 is the trigger point for an acceleration to the downside with potential targets coming in at 24026 and 23978, followed by an uptrending Gann angle at 23844.

We’re not sure of the volume today so be careful selling weakness and buying strength. Without above average volume momentum-based trades tend to fail.