E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 16, 2018 Forecast

Based on yesterday’s price action and today’s early move, the direction of the Dow today is likely to be determined by trader reaction to the Fib level at 24684.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures are expected to open little changed a day after a major setback was fueled by a sharp rise in U.S. Treasury yields.

Treasury yields are a little lower today, but there are renewed geopolitical concerns over North Korea after the rogue nation cancelled a summit meeting with South Korea. This could become a major issue if North Korea decides to cancel the meeting scheduled with President Trump in Singapore in June.

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Daily June E-mini Dow Jones Industrial A

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A move through 24971 will signal a resumption of the uptrend.

The minor trend is also up. However, a new minor top was formed at 24871.

The Dow ran into major retracement zone resistance at 24923 to 25347 earlier this week. This zone is controlling the longer-term direction of the market.

The short-term range is 23467 to 24971. If there is a correction then its retracement zone at 24219 to 24042 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on yesterday’s price action and today’s early move, the direction of the Dow today is likely to be determined by trader reaction to the Fib level at 24684.

A sustained move under 24684 will indicate the presence of sellers. This could lead to a labored break with early downside targets coming in at 24569 and 24421.

The selling will open up to the downside if 24421 fails. This could trigger a break into the short-term retracement zone at 24219 to 24042. Since the main trend is up, buyers are likely to show up on a test of this zone.

A sustained move over 24684 will signal the presence of buyers. This could spike the market into a cluster of potential resistance levels at 24687, 24923 and 24971.

Overcoming 24971 with conviction could trigger an acceleration into 25347 over the near-term.

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