E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 24, 2017 Forecast

June E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. It’s also trading inside yesterday’s range which suggests investor indecision and impending volatility.

Increased demand for higher priced assets is currently helping to drive the market back towards its all-time highs. The market has almost fully-recovered last week’s steep sell-off.

We could see a tight trading range early in today’s session with the release of the Fed Meeting Minutes at 1800 GMT. Traders are expecting the minutes to come out hawkish with the FOMC expressing some concerns over weakness in the economy, but not enough to derail the central bank’s plans to raise interest rates in June.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 20995 will change the main trend to up, but to be safe, I’d like to see a breakout over the double-tops at 21010.

Forecast

The current price action suggests today’s price action will be determined by momentum.

If enough buyers come in to sustain the upside momentum then we could see a rally into 20995 to 21010.

If sellers retake control then look for momentum to shift back to the downside with the next potential target a major Fibonacci level at 20804. We could see a technical bounce on the first test of this level, but if it fail then look for a possible plunge into the next two potential support levels at 20710 and 20661.

It looks like investors have put President Trump’s problems on the back-burner for now so investors are likely to react more to economic news as we approach the June Federal Open Market Committee meeting.