E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 27, 2016 Forecast

September E-mini Dow Jones Industrial Average futures sold-off sharply early in Thursday’s session in reaction to a sharp rally by the Japanese. However, investors were able to recover most of the loss into the close.

The main trend is up according to the daily swing chart. The trend will resume on a trade through 18565. Momentum is slightly to the downside.

The main range is 17618 to 18565. Its retracement zone at 18092 to 17763 is today’s primary downside target. Since the main trend is up, we’ll probably see buyers come in on a test of this zone.

The new short-term range is 18565 to 18311. Its 50% level or pivot comes in at 18438. This price is controlling the short-term direction of the market.

Based on Tuesday’s close at 18398 and the early price action, the direction of the Dow today will likely be determined by trader reaction to the downtrending angle at 18405.

A sustained move over 18405 will indicate the presence of buyers. This may generate some upside momentum but the rally is likely to be labored because of potential resistance levels at 18438, 18485 and 18525. The latter is the last potential resistance angle before the 18565 main top.

Taking out 18565 will reaffirm the uptrend with an uptrending angle at 18578 the next target. Crossing to the bullish side of this angle will put the Dow in a bullish position.

A sustained move under 18405 will indicate the presence of sellers. The daily chart is open to the downside with potential targets yesterday’s low at 18311 and a long-term uptrending angle at 18305. This angle is the trigger point for a steep break with the next targets 18098 and 18092.

Look for an upside bias to develop on a sustained move over 18438 and a downside bias on a sustained move under 18405.