E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – June 20, 2019 Forecast

According to the bulls, the dovish Fed basically greenlit another leg up in this more than 10 year rally. One lesson that investors learned over this time period is cheap money drives the market. Who cares if the on-going trade dispute with China is costing companies money.
James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading sharply higher shortly before the cash market opening. The rally is being fueled by expectations of a Fed rate hike in July and the hope that the meeting between U.S. President Trump and China President Xi Jinping at the G-20 summit in Osaka, Japan will open the door to an eventual trade deal between the two economic powerhouses.

At 12:56 GMT, September E-mini Dow Jones Industrial Average futures are trading 26771, up 235 or +0.88%.

Daily Sept E-mini Dow Jones Industrial Average

Daily Technical Analysis

According to the bulls, the dovish Fed basically greenlit another leg up in this more than 10 year rally. One lesson that investors learned over this time period is cheap money drives the market. Who cares if the on-going trade dispute with China is costing companies money.

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers drove prices through the April 23 main top at 26710. The next target is the contract high at 27031.

The main trend will change to down on a trade through 25897. This is highly unlikely today. With resistance scarce at current price levels, the best sign of meaningful resistance will be a closing price reversal top chart pattern.

Daily Technical Forecast

Now that we’ve crossed to the strong side of 26710, we’d like to see buyers come in at this level if tested. This is called buying with conviction. If this occurs then it could generate the upside momentum needed to race toward the all-time high at 27031.

If 26710 fails as support then this could open the door for a pullback into a steep uptrending Gann angle at 26537. Since the main trend is up, buyers could come in on a test of this level.

If 26537 fails as support then look for the selling to possibly continue with the next target the longer-term uptrending Gann angle at 26290.

Overview

Don’t try to pick a top if you’re bearish, you’ll just be feeding the bull. Wait for a closing price reversal top because this is a safer trade. It is usually the best indication that the selling is greater than the buying at current price levels.

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