E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 30, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. Investors are covering shorts following yesterday’s steep sell-off in reaction to the easing of tensions in Italy. Italy’s biggest party is reportedly trying to make a renewed attempt to form a coalition government and end months of political reform.

If this attempt fails to bring the parties together then look for the selling pressure to resume.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has shifted to the downside.

A trade through 24227 will indicate the selling pressure is getting stronger. A move through 24906 will shift momentum back to the upside. A trade through 25080 will signal a resumption of the uptrend.

The main range is 23467 to 25080. Its retracement zone at 24274 to 24083 is support. This zone stopped the selling at 24227 on Tuesday.

The short-term range is 24906 to 24227. Its 50% level or pivot comes in at 24567. This is the first upside target.

Another short-term range is 25080 to 24227. Its retracement zone at 24654 to 24754 is the next upside target.

The major upside target is retracement zone at 24926 to 25351. This zone is controlling the longer-term direction of the index. It stopped the rally last week at 25080.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the short-term pivot at 24567.

The inability to overcome 24567 will indicate the return of sellers. This could lead to a retest of 24274, 24227 and possibly the Fibonacci level at 24083. This price is a potential trigger point for an acceleration to the downside.

The daily chart is wide open under 24083 with the next major target coming in at 23467.

Overcoming 24567 will indicate the presence of buyers. However, the next move is likely to be labored because of potential resistance levels at 24654 and 24754. Overcoming the latter could trigger an acceleration into 24906 and 24926.

We’re in a news driven market so we could see a two-sided trade until investors get the news needed to generate a trend. The daily chart still indicates the way of least resistance is down until buyers clear the retracement levels at 24567, 24654 and 24754.