E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 29, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are trading sharply lower shortly after the cash market opening. Investors are reacting to steep sell-offs in European stock markets, a steep plunge in the Euro and economic and political turmoil in Italy.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower.

The main range is 23467 to 25080. Its retracement zone at 24274 to 24083 is the primary downside target. Since the main trend is up, buyers could step in on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the June E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to a pair of Gann angles today at 24619 and 24696.

A sustained move under 24619 will indicate the presence of sellers. The daily chart could start to open up to the downside with the next major target the 50% level at 24274.

Watch for a technical bounce on the first test of 24274. If this level fails, the selling could extend into the Fibonacci level at 24083, followed by the uptrending Gann angle at 24043.

On the upside, a sustained move over the downtrending Gann angle at 24696 will signal the presence of buyers. If this move generates enough upside momentum, we could see a drive into a pair of downtrending Gann angles at 24888 and 24984. The latter is the last potential resistance angle before the 25080 main top.

The daily chart shows the way of least resistance is down.