E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 22, 2018 Forecast

Based on the early price action, June E-mini Dow Jones Industrial Average futures are expected to open the regular session higher. The move represents a follow-through rally of yesterday’s strong performance that was fueled by upbeat news about U.S.-China trade relations.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. Today is the 13^th day up from the last main bottom so the index is in the window of time for a closing price reversal top. Momentum will shift to the downside if this chart pattern forms, however, the main trend will remain intact.

The market is currently trading inside a major retracement zone at 24926 to 25351. This zone is controlling the longer-term direction of the market.

The nearest support is 24926 and 24867. This is followed by 24684 and 24569.

The nearest resistance is 25351 so there is plenty of room to the upside.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by yesterday’s close at 25010.

A sustained move over 25010 will indicate the presence of buyers. Taking out yesterday’s high at 25080 will indicate the buying is getting stronger. If this generates enough upside momentum, we could see an eventual test of 25351.

A sustained move under 25010 will signal the presence of sellers. If the index takes out yesterday’s high then breaks below 25010, a closing price reversal top will start forming. This could lead to a 2 to 3 day correction.