E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Crossed to Bullish Side of Retracement Zone as Momentum Builds

Based on the current price at 26006, the direction of the market the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 25898.
James Hyerczyk
E-mini Dow Jones Industrial Average

June E-mini Dow Jones Industrial Average futures surged to their highest level since May 7 shortly after the cash market opening and the release of a weaker than expected U.S. Non-Farm Payrolls report. Traders are celebrating the bad jobs data because it increased the odds of easier monetary policy from the Federal Reserve. Cheap money drives the market. Who cares about earnings and tariffs?

At 17:301 GMT, June E-mini Dow Jones Industrial Average futures are trading 26018, up 273 or +1.06%.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 24610 on June 3.

The trend isn’t close to turning higher for the session, but the market is trading on the strong side of a retracement zone, which is creating an upside bias.

The main range is 26694 to 24610. Its retracement zone is controlling the near-term direction of the market. Currently, the market is trading on the bullish side of this zone so let’s call it support.

The minor trend is up. It turned up when buyers took out 25955. This shifted momentum to the upside.

Daily Technical Forecast

Based on the current price at 26006, the direction of the market the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 25898.

Bullish Scenario

A sustained move over 25898 will indicate the presence of buyers. If this move continues to generate enough upside momentum then look for the rally to possibly extend into a downtrending Gann angle at 26198.

We could see a technical bounce on the first test of this level but if it is taken out then look for the move to possibly extend into the next downtrending Gann angle at 26446. This is the last potential resistance angle before the 26694 main top.

Bearish Scenario

A sustained move under 25898 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into the support cluster at 25702, 25652 and 25634.

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