E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 10, 2019 Forecast

June E-mini Dow Jones Industrial Average futures are trading higher on Monday but retreating from its high as we approach the mid-session. The market gapped higher during the pre-market session on the news of a deal between the United States and Mexico that brought an end to the threat of tariffs on Mexican imports that were supposed to begin today.

At 16:08 GMT, June E-mini Dow Jones Industrial Average futures are trading 26183, up 176 or 0.67%. The high of the session is 26289.

The primary catalyst behind the market’s strength is expectations of a rate cut by the Fed in either June or July. The market has been rallying since June 3 after Fed Chair Jerome Powell opened the door to a softer monetary policy.

Daily Technical Analysis

The main trend is down according to the daily swing chart but momentum has been trending higher since the formation of a daily closing price reversal bottom at 24610 on June 3. The main trend will change to up on a trade through 26694.

The minor trend is up. It turned up last week when buyers took out a pair of main tops at 25955 and 26016.

The main range is 26694 to 24610. Its retracement zone at 25898 to 25652 is controlling the direction of the Dow. Holding above this zone is contributing to today’s upside bias. Consider this zone support.

Daily Technical Forecast

Based on the current price at 26183 and the earlier price action, the direction of the June E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 26182.

Bullish Scenario

A sustained move over 26182 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into a pair of downtrending Gann angles at 26438 and 26566. The latter is the last potential resistance angle before the 26694 main top.

Bearish Scenario

A sustained move under 26182 will signal the presence of sellers. This could drive the market into a Fibonacci level at 25898 and a steep uptrending Gann angle at 25890. Look for buyers on the first test of this area.

IF 25890 fails as support then look for the selling to possibly extend into the 50% level at 25652.