E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 23, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are trading sharply lower early Wednesday. Lower demand for risky assets in reaction to concerns over a possible trade war between the United States and China, and worries that the summit between the United States and North Korea may not take place in June as scheduled are the catalysts behind the selling pressure.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may be getting ready to shift to the downside. A trade through 25080 will signal a resumption of the uptrend.

The major retracement zone at 24926 to 25351 is the most important resistance area. It is controlling the longer-term direction of the market. It also stopped the rally earlier this week.

The intermediate range is 25535 to 23306. Its retracement zone is 24684 to 24421. The Dow is currently in a position to test this area.

The short-term range is 23467 to 25080. If the downside pressure continues then look for a possible break into its retracement zone at 24274 to 24083. This is the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the Fibonacci level at 24684.

A sustained move under 24684 will signal the presence of sellers. The first target is the minor bottom at 24603. Taking out this level will change momentum to down. This could trigger an acceleration into the intermediate 50% level at 24421 then the short-term retracement zone at 24274 to 24083.

A sustained move over 24684 will indicate the presence of buyers. There is room to the upside over this level with 24926 the first target, followed by 25080.