E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 14, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening with most of the strength coming in during the pre-market session. Solid U.S. economic news in the form of strong retail sales data and better-than-expected weekly unemployment claims are the catalysts behind the move. Speculators are also betting on increased merger activity.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25418 will signal a resumption of the uptrend. A move through 25149 will signal the return of sellers.

The minor trend is also up. A trade through 25093 will change the minor trend to down. This will shift momentum to the downside.

The market is currently trading inside a major retracement zone, bounded by 25337 and 24925.

The new main range is 24263 to 25418. Its retracement zone at 24841 to 24704 is the primary downside target zone if there is a short-term pullback.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the Dow today will be determined by trader reaction to the major Fibonacci level at 25337.

A sustained move over 25337 will indicate the presence of buyers. This could trigger a fast move into the main top at 25418. Taking out this top should drive the Dow into the March 12 top at 25555.

We could see a technical bounce on the first test of 25555. However, if buyers can take it out with conviction then look for an acceleration to the upside with 25868 the next major target.

The inability to overcome 25337 will signal that sellers are defending this level. If buyers decide to throw in the towel then look for a retest of 25149.

If 25093 fails then momentum will shift to the downside with 24925 and 24841 the next key targets.

Watch the price action and read the order flow at 25337 all session. Trader reaction to this level will tell us if the buying is getting stronger, or if the sellers are regaining control.