E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 4, 2017 Forecast

Traders are calling the June E-mini Dow Jones Industrial Average futures contract higher on the opening based on the pre-market trade. Trader are reacting to yesterday’s Fed statement. Gains may be limited today, however, due to expectations of low volume and volatility tied to Friday’s U.S. Non-Farm Payrolls report.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 21010 will signal a resumption of the uptrend. This will also make 20805 a new main bottom.

The short-term range is 21010 to 20805. Its 50% level or pivot is 20908. This price is controlling the short-term direction of the market.

On the downside, support is the minor bottom at 20805 and the major Fibonacci level at 20802. If this area fails then look for an acceleration to the downside with the next major target the 50% level at 20709.

Forecast

Based on the current price at 20928, the direction of the market today is likely to be determined by trader reaction to the pivot at 20908.

Look for an upside bias today on a sustained move over 20908. This could create the upside momentum needed to challenge 21010.

A downside bias is likely to develop on a sustained move under 20908. If the selling pressure is strong enough then this could lead to a move into 20802.