E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 28, 2016 Forecast

September E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. The market is trading below its short-term pivot which is an indication of light selling pressure.

The main trend is up according to the daily swing chart, however, momentum has been sideways to lower since the top at 18565 on July 20.

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

Based on the current price at 18387, the key support cluster is 18373 to 18369. If this area fails as support then look for a possible acceleration to the downside with the next target this week’s low at 18311.

Taking out 18311 will indicate the selling is getting stronger. This could eventually lead to a test of the uptrending angle at 18130, followed closely by a 50% level 18092.

A sustained move over 18369 will signal the presence of buyers. The first upside objectives are 18438 and 18469. Overcoming 18469 could lead to a test of the downtrending angle at 18373. This is the last potential resistance angle before the 18565 main top.

A breakout over 18565 will signal a resumption of the uptrend with 18642 the next target. Crossing to the strong side of this angle will put the Dow in a bullish position.

Look for an upside bias today on a sustained move over 18373 and a downside bias on a sustained move under 18369.