E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – July 1, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher at the cash market opening. During the early futures market opening, the Dow gapped higher and followed through to the upside before stalling. Most of the early buying was fueled by aggressive Asian buying in reaction to the news of renewed trade talks between the United States and China.

At 14:34 GMT, September E-mini Dow Jones Industrial Average futures are trading 26845, up 253 or +0.94%.

The news is bullish on paper, but U.S. investors have to decide whether it was bullish enough to trigger a further rally right after the U.S. opening, or to wait for a pullback into support. This could mean filling the gap.

E-mini Dow Jones Industrial Average
Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26922 will negate a closing price reversal top and signal a resumption of the uptrend. This could trigger a rally into the October 3, 2018 main top at 27031. A move through 26445 will change the main trend to down.

The minor range is 26922 to 26445. Its 50% level or pivot at 26684 is support. Holding above this level is helping to support the intraday upside bias.

The short-term range is 25897 to 26922. If the trend changes to down then its retracement zone at 26410 will become the next downside target.

Daily Technical Forecast

Momentum is driving the market higher on Monday. If it continues to increase then look for the move to possibly extend into the main top at 26922. Taking out this level will indicate the buying is getting stronger with the October 3, 2018 main top at 27031 the next major target.

On the downside, the nearest support angle comes in at 26701. This is followed closely by the pivot at 26684 and another uptrending Gann angle at 26665. Let’s call it a support cluster.

If 26665 fails as support then look for the selling to possibly extend into the next support angle at 26573.

Overview

The major decision for investors is whether to chase the market higher after the gap opening or play for a pullback into support.

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.