E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 22, 2017 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is trading inside Friday’s range which suggests investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 20995 will change the main trend to up. Just to be safe, let the market take out the two tops at 21010.

On the downside, a trade through 20474 will negate the closing price reversal bottom and signal a resumption of the downtrend.

Forecast

Based on the current price at 20821, the direction of the market is likely to be determined by trader reaction to the major Fibonacci level at 20804.

A sustained move over 20804 will signal the presence of buyers. If the buying volume is strong then we could see an acceleration to 20995 to 21010.

A failure to hold above 20804 will indicate the presence of sellers. This could drive the market into a pair of 50% levels at 20735 and 20710.

The daily chart opens up further to the downside under 20710 with another 50% level at 20661 the next target.

Watch the price action and read the order flow at 20804 all session. Trader reaction to this level will set the tone for the day.