E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 7, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are trending higher shortly before the cash market opening. The early strength is being driven by increased appetite for risk. However, late in the session I expect to see profit-taking as investors begin to square positions ahead of this week-ends G-7 meeting.

At 1302 GMT, June E-mini Dow Jones Industrial Average futures are trading 25201, up 60 or 0.24%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The next major upside target is the March 12 main top at 25535, followed by the February 27 main top at 25832.

Today’s session begins with the Dow up seven sessions from the last main bottom. This puts it in the window of time for a potentially bearish closing price reversal top. The chart pattern is not expected to change the trend to down, but it could alleviate some of the upside pressure.

If confirmed, a closing price reversal top often leads to the start of a 2 to 3 day correction.

The Dow is also trading inside a retracement zone, bordered by a 50% level at 24926 and a 61.8% Fibonacci level at 25351. This zone is controlling the near-term direction of the market.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to yesterday’s close at 25140.

A sustained move over 25140 will indicate the presence of buyers. If this generate enough upside momentum, we could see a rally into the Fib level at 25351. This is followed by 25535.

A sustained move under 25140 will signal the presence of sellers. If this move attracts enough sellers, we could see a break into the 50% level at 24926. This is also the trigger point for an acceleration to the downside.

Watch the price action and read the order flow at 25140 all session. Trader reaction to this level will tell us if the buyers are still in control, or if the sellers have returned.