E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 4, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. Investors are selling stock in reaction to today’s U.S. Non-Farm Payrolls report that came in weaker-than-expected.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Momentum is trend lower, but yesterday’s closing price reversal bottom suggests investors may be trying to shift momentum to the upside.

A trade through 24458 will change the main trend to up. A move through 23467 will reaffirm the downtrend.

Investors are also facing a mountain of resistance from a series of resistance levels. Since the main trend is down, sellers could come in at any time on a test of these levels.

The main range is 23306 to 24827. Its retracement levels at 23887 to 24067 is resistance.

The intermediate range is 24827 to 23467. Its retracement zone at 24147 to 24307 is also resistance.

The short-term resistance zone is 23963 to 24079.

The combination of the intermediate 50% level at 24067 and the short-term Fibonacci level at 24079 forms a resistance cluster.

Daily Swing Chart 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 the main Fib at 23887.

A sustained move under 23887 will indicate the presence of sellers. This could trigger an acceleration to the downside since the next target doesn’t come in until 23467. A failure at this price could lead to further break into 23361 to 23306.

A sustained move over 23887 will signal the presence of buyers. However, the initial rally could be labored because of potential resistance at 23963, 234067, 24079 and 24147.

Taking out 24147 could trigger an acceleration into 24307 then 24458. Look for the start of a huge rally if buyers can take out 24458 with 24827 the next likely target.