E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Overcoming 20741 Reverses Selling

June E-mini Dow Jones Industrial Average futures are indicating a sharply lower cash market opening. Futures are currently trading limit down which suggests the cash Dow will open at least 800 points lower.

Exchange-traded funds that track the indexes are not subject to limit-down restrictions, however, and suggested what the open would look like. The SPDR Dow Jones Industrial Average ETF was down 6.5%.

At 13:31 GMT, June E-mini Dow Jones Industrial Average futures are trading 19949, down 911 or -4.37%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend was reaffirmed when sellers took out yesterday’s closing price reversal bottom at 19736.

The main trend will change to up on a trade through 26962. This is highly unlikely, but due to the prolonged move down in terms of price and time, the best pattern to indicate a bottom will be a dramatic closing price reversal bottom.

On the downside, the first support is a main bottom at 19558. This is also the trigger point for an acceleration to the downside with 17297 the next likely target.

Daily June E-mini Dow Jones Industrial Average

Daily Technical Forecast

Based on the early price action and the current price at 19949, the direction of the June E-mini Dow Jones Industrial Average futures contract the rest of the session on Wednesday will be determined by trader reaction to yesterday’s close at 20741.

Bearish Scenario

A sustained move under 20741 will indicate the presence of sellers. The first downside target is the main bottom at 19558.

Taking out 19558 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with targets coming in at 17297 and 17218.

Bullish Scenario

Overcoming and sustaining a rally over 20741 will put the Dow in a position to form a potentially bullish closing price reversal bottom. This won’t change the trend, but if confirmed, could trigger the start of a 2 to 3 day counter-trend rally.

The downtrending Gann angle at 21330 is also important to watch. This angle has been guiding the market lower since March 3. Look for sellers on the first test. However, watch for an acceleration to the upside if buyers can take out this angle.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.