E-mini Dow Jones Industrial Average (YM) Futures Analysis – May 8, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Position-squaring ahead of President Trump’s announcement on the Iran nuclear deal at 1800 GMT, is probably behind the selling pressure.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24458 will change the main trend to up. This could trigger a surge to the upside.

The price action is also being manipulated by a number of retracement levels.

The main range is 23306 to 24827. Its retracement zone at 24067 to 23887 is support. Trading on the strong side of this zone will give the index an upside bias.

The intermediate range is 24827 to 23467. Its retracement zone at 24147 to 24307 is currently acting like resistance.

The short-term range is 23467 to 24425. Its retracement zone at 23946 to 23833 is the primary downside target. This zone is straddling the main Fibonacci level at 23887.

Daily Swing Chart Technical Forecast

Based on yesterday’s price action and today’s early trade, the direction of the Dow the rest of the session is likely to be determined by trader reaction to the intermediate Fib at 24307.

A sustained move under 24307 will indicate the presence of sellers. This could drive the Dow into 50% levels at 24147 and 24067. Look for an acceleration to the downside under 24067 with the next target a potential support cluster at 23946 to 23833.

A sustained move over 24307 will signal the presence of buyers. If this move generates enough upside momentum then look for a test of 24425 and 24458.

Taking out 24458 will not only change the main trend to up, but it is also the trigger point for the start of a huge rally with 24827 the next potential upside target.