E-mini Dow Jones Industrial Average (YM) Futures Analysis – Straddling Major Fibonacci Level, but Volume is Low

June E-mini Dow Jones Industrial Average futures are trading nearly flat at the mid-session with most major players on the sidelines, keeping their powder dry ahead of the U.S. Federal Reserve’s monetary policy statement and interest rate decision on Wednesday.

Investors are also showing no reaction to the U.S. consumer inflation report that met expectations and the favorable outcome from the U.S.-North Korean summit.

At 1612 GMT, the June E-mini Dow Jones Industrial Average futures contract is trading 25333, up 4 or +0.02%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25400 will signal a resumption of the uptrend.

The market is also up 10 days from the last main bottom which puts it in the window of time for a possible closing price reversal top.

The minor trend is also up. It will turn down on a trade through 25076. This will shift momentum to the downside.

The major 50% to 61.8% retracement zone is 24926 to 25351. This zone is controlling the longer-term direction of the market. The market is currently straddling the upper or Fib level.

The short-term range is 24227 to 25400. If the minor trend changes to down and momentum shifts to the downside then look for a potential break into its retracement zone at 24814 to 24675.

Daily Swing Chart Technical Forecast

Based on the current price at 25333, the direction of the Dow the rest of the session will be determined by trader reaction to the Fib level at 25351.

A sustained move over 25351 will indicate the presence of buyers. This could drive the Dow through 25400. This could create the momentum needed to challenge the March 12 top at 25535. This is another trigger point for an acceleration to the upside.

A sustained move under 25351 will signal the presence of sellers. This could fuel a sharp break into 25076. If this price fails then look for a possible break into at least 24926.

Of course, these are momentum moves and without better than average volume, they are likely to fail. So be careful buying strength and selling weakness.