E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – April 8, 2019 Forecast

June E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening.  Although there are some concerns over slower U.S. economic growth after Friday’s U.S. Non-Farm Payrolls report showed softer average hourly wage growth, traders are saying today’s early weakness may be related to worries about what is expected to be a weak earnings season.

At 11:33 GMT, June E-mini Dow Jones Industrial Average futures are trading 26329, down 65 or -0.25%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26509 will signal a resumption of the uptrend. The main trend is safe for now. A move through 25377 will change the main trend to down. The selling pressure is not a surprise since Friday’s close marked the ninth day up from the last swing bottom. The index tends to top out after 7 to 10 day rallies.

The main range is 25377 to 26509. Its retracement zone at 25943 to 25809 is the primary downside target.

Daily Technical Forecast

The Dow is expected to open on the weak side of an uptrending Gann angle at 26590 and on the strong side of an uptrending Gann angle at 26017.

If the downside momentum continues then look for sellers to try to take out weak stops under the last three lows at 26196, 26133 and 26126. This should clear the way for a test of the first uptrending Gann angle at 26017. We could see a technical bounce on the first test of this angle. If it fails then look for the selling to extend into a 50% level at 25943 and an uptrending Gann angle at 25918. Buyers could also come in on a test of these levels since they represent value.

If enough buyers come in to reverse the earlier price action, then look for a possible test of the minor top at 26509. Taking out this minor top should trigger a further rally into a pair of uptrending Gann angle at 26590 and 26657. Crossing to the strong side of the angle at 26657 will put the Dow in a bullish position.