E-mini Dow Jones Industrial Average (YM) Futures Analysis – June 4, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. Investors are shrugging off worries about a potential trade war and another rate hike in June, and instead are focusing on the strength of the economy.

Friday’s U.S. Non-Farm Payrolls report showed the unemployment rate hit 3.8% in May. More people working means there should be more money to spend on U.S. goods and services. Furthermore, the price action suggests investors have absorbed the widely expected June Fed rate hike, and aren’t too worried about future rate hikes at this time.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is still sideways-to-lower. A trade through 25080 will signal a resumption of the uptrend.

The minor trend is down. A move through 24906 will change the minor trend to up and shift momentum to the upside.

The short-term range is 25080 to 24227. The market is currently attempting to cross to the bullish side of its retracement zone at 24654 to 24754.

The main range is 23467 to 25080. Its retracement zone at 24274 to 24083 is support.

Daily Technical Forecast

Based on the early trade, the direction of the June E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to a downtrending Gann angle at 24792 and a 50% level at 24754.

A sustained move over 24792 will signal the presence of buyers. If this move generates enough upside momentum, we could see a surge into the next downtrending Gann angle at 24936. Overtaking this angle could drive the Dow into the next Gann angle target at 25008. This is the last potential resistance angle before the 25080 main top.

A sustained move under 24792 will indicate the presence of sellers. If this move creates enough downside momentum then look for a retest of the 50% level at 24654. The daily chart opens up to the downside under this level.