E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 31, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Volume and volatility are expected to be below average today with many of the major players on the sidelines ahead of the release of the U.S. Non-Farm Payrolls report on Friday.

Earlier today, ADP issued its employment change report. It came in as expected. Later today, investors will get the opportunity to react to the latest Chicago PMI and pending home sales.

Technically, the main trend is down according to the daily swing chart. The trend will turn up on a trade through 18623. A move through 18311 will signal a resumption of the downtrend.

The main range is 18170 to 18623. Its retracement zone at 18396 to 18343 is the primary downside target. This zone provided support last week and early this week.

The short-term range is 18623 to 18311. Its retracement zone at 18467 to 18504 stopped the rally on Monday and Tuesday.

Based on the current price at 18418, the direction of the market today is likely to be determined by trader reaction to the price cluster at 18338.

A sustained move under 18431 will indicate the presence of sellers with the next target the main 50% level at 18396. This is a potential trigger point for an acceleration into the next support cluster at 18343 to 18338.

A sustained move over 18431 will signal the presence of buyers. This could trigger a layered rally with potential upside targets lined up at 18467, 18504 and 18527.

Look for a downside bias to develop on a sustained move under 18431 and an upside bias on a sustained move over this price.