E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 27, 2018 Forecast

Blue chip stocks are trading lower shortly before the cash market opening, but they’re making a strong bid to turn higher for the pre-market session after nearly taking out the low for the week earlier in the session. The market is also in a position to challenge yesterday’s high.

At 1233 GMT, September E-mini Dow Jones Industrial Average futures are trading at 24317, up 14 or +0.05%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It’s also trading on the strong side of the previous main bottom at 24263 which could mean traders who shorted weakness earlier in the week are trapped near the lows. They could get caught in a squeeze that could fuel a strong short-covering rally.

A trade through 24077 will signal a resumption of the downtrend.

The main range is 23500 to 25418. The Dow is currently trading inside its retracement zone at 24459 to 24233. This zone is controlling the near-term direction of the Dow.

The new short-term range is 25418 to 24077. If the rally gains traction then look for the move to extend into its retracement zone at 24748 to 24906.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini S&P 500 Index is likely to be determined by trader reaction to the Fibonacci level at 24233.

A sustained move over 24233 will indicate the presence of buyers. This could trigger a move into the 50% level at 24459, followed by the downtrending Gann angle at 24650.

The downtrending Gann angle at 24650 is very important to the structure of the chart pattern because it has been guiding the Dow lower for 12 trading sessions.

Overtaking 24650 will indicate the buying is getting stronger. This could trigger an eventual move into the retracement zone at 24748 to 24906.

A sustained move under 24233 will signal the presence of sellers. This could drive the Dow into an uptrending Gann angle at 24108. This angle stopped the selling earlier today and on Monday.

If 24108 is taken out with conviction then look for a potential acceleration to the downside with target angles coming in at 23804 and 23652. The latter is the last potential support angle before the 23500 main bottom.