E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 19, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading sharply lower shortly after the cash market opening. Earlier in the session, the Dow reached a low of 24569. However, since then it has clawed back some of those losses.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 24263 will change the main trend to down.

The main range is 24263 to 25418. Its retracement zone is 24841 to 24704. The Dow is currently trading on the weak side of this zone, helping to solidify the downside bias. Traders should treat these levels like resistance. Additional resistance is the major 50% level at 24925.

Daily Technical Forecast

Based on the early price action and the current price at 24677, the direction of the September E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the short-term Fibonacci level at 24704.

A sustained move under 24704 will indicate the presence of sellers. If this move creates enough downside momentum, we could see a break into an uptrending Gann angle at 24503. We could see a technical bounce on the first test of this Gann angle.

If 24503 fails as support then look for the selling to extend into the next Gann angle at 24383. This is the last potential support angle before the 24263 main bottom.

Overcoming and sustaining a move over 24704 will signal the presence of buyers. A sustained move over an uptrending Gann angle at 24743 will indicate the intraday buying is getting stronger. This could fuel a labored rally with potential upside targets coming in at 24841, 24925 and 25034.

Watch the price action and read the order flow at 24704 all session. Trader reaction to this level will tell us if the sellers or buyers are in control.