E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 23, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading slightly lower shortly before the cash market opening. The market sold off during the pre-market session but is mounting a comeback rally into the opening.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on June 20 at 21494. This chart pattern typically leads to a 2 to 3 day break, or 50% of the last rally.

The time is right for a rebound rally, but the index did not reach its retracement zone objective at 21280 to 21229.

We could see a technical bounce later today on the first test of the retracement zone. A pair of uptrending angles at 21257 and 21247 also pass through this zone, making them a valid downside target.

Forecast

Based on the current price at 21334 and the earlier price action, the first downside target is the short-term 50% level at 21280. This is followed by 21257, 21247 and 21229.

Crossing to the weak side of the Fib at 21229 will indicate that the selling is getting stronger. Taking out the minor bottom at 21218 will change the minor trend to down. This could trigger an acceleration to the downside with the next major target coming in at 21065.

Holding above 21280 will indicate buyers are coming in to defend the uptrend. This could create enough upside momentum to challenge the downtrending angle at 21398. This could lead to a test of a pair of downtrending angles at 21446 and 21470. The latter is the last potential resistance angle before the 21494 main top.

Since the main trend is up, we could see buyers come in on a test of 21280 to 21229.