E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 25, 2016 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher on Wednesday. The move represents a continuation of yesterday’s rally.

The main trend is up according to the daily swing chart. The trend turned up earlier today when the main top at 17720 was taken out.

The main range is 18083 to 17297. Its retracement zone is 17690 to 17783. This zone is currently being tested. Trader reaction to this zone will set the tone over the near-term. Look for a bullish tone on a sustained move over 17783 and a bearish tone on a sustained move under 17690.

Based on the current price at 17728, the first two upside targets are a downtrending angle at 17776 and the Fib level at 17783. The latter is a potential trigger point for an acceleration to the upside with the next target a main top at 17864, followed by a long-term downtrending angle at 17883.

If the buying spree continues then we could see the rally extend into a main top at 18006 and another long-term downtrending angle at 17983. The latter is the last potential resistance angle before the 18083 main top.

A break back under the 50% level at 17690 will indicate the presence of sellers. Crossing to the weak side of the downtrending angles at 17688 and 17683 will put the Dow in a bearish position. This could fuel an acceleration to the downside with the next major target coming in at 17553.

Watch the price action and read the order flow at 17690 today. Holding above it will indicate the presence of buyers. Breaking below it will be a sign that sellers have returned.