E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 20, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market appears to be recovering nicely following yesterday’s steep sell-off. Of the three major indexes, the Dow remains the weakest.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 25418 will signal a resumption of the uptrend. A move through 24263 will change the main trend to down.

The minor trend is down. This is why the momentum is trending lower.

The main range is 24263 to 25418. Its retracement zone at 24841 to 24704 is currently being tested. Buyers are going to try to produce a new secondary higher bottom. If successful, this chart pattern could create the momentum needed to challenge 25418.

The new short-term range is 25418 to 24569. Its retracement zone is 24994 to 25094. This zone is important because aggressive counter-trend sellers may step in on a test of this zone in an effort to form a new secondary lower top.

The major retracement zone is 24925 to 25337. This zone is controlling the longer-term direction of the Dow.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average futures contract today will be determined by trader reaction to 24841 and 24704.

A sustained move over 24841 will indicate the presence of buyers. This could lead to a labored rally with potential targets coming in at 24925, 24994 and 25094.

Taking out 25094 could trigger an acceleration to the upside with 25337 the next major target.

The inability to overcome 24841 will indicate sellers are stopping the rally from developing. A sustained move under 24704 will signal the selling is getting stronger. If this generates enough downside momentum, we could see the start of an acceleration to the downside. The selling pressure should really pick up under 24569 with 24263 the next major target.

Basically, look for an upside bias today on a sustained move over 24841, and for a downside bias to develop on a sustained move under 24704.