E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 17, 2018 Forecast

Based on this week’s price action and today’s early trade, the direction of the June E-mini Dow Jones industrial Average is likely to be determined by trader reaction to the Fibonacci 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 trading lower shortly after the cash market opening. The early selling is being fueled by rising U.S. Treasury yields and strong U.S. economic data which is raising expectations for additional rate hikes by the Fed later this year.

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Daily June E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been moving sideways since making its high for the week on Monday. A trade through 24971 will signal a resumption of the uptrend.

A trade through the low for the week at 24603 will indicate the selling pressure is getting stronger.

On the upside, the main target is a long-term retracement zone at 24923 to 25347. This zone stopped the rally earlier in the week.

A series of retracement levels at 24867, 24787, 24684, 24569 and 24421 is also contributing to the sideways price action.

The short-term range is 23467 to 24971. If the selling is strong enough to take out the series of retracement levels then we could see a move into its retracement zone at 24219 to 24042. This zone is the primary downside target. And since it is also a value area, a test of this zone could draw the attention of buyers.

Daily Swing Chart Technical Forecast

Based on this week’s price action and today’s early trade, the direction of the June E-mini Dow Jones industrial Average is likely to be determined by trader reaction to the Fibonacci level at 24684.

A sustained move above 24684 will indicate the presence of buyers. This could fuel a labored rally with upside targets at 24787, 24867, 24923 and 24971. Taking out 24971 could trigger an acceleration to the upside.

A sustained move under 24684 will signal the presence of sellers. This could drive the Dow into 24603 and 24569.

Taking out 24569 could extend the break into 24421. The daily chart starts to open up to the downside under this level with the short-term retracement zone at 24219 to 24042 the primary target.

Without volatility, the trade could slow to a crawl. There are just too many retracement levels in the way at this time to trigger any meaningful moves.

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