E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 10, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. The price action suggests investors are trying to decide whether it’s a risk on or risk off day.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of a new main top.

A trade through 22132 will signal a resumption of the uptrend. A trade through 21951 will indicate the selling pressure is increasing.

The new short-term range is 22132 to 21951. Its retracement zone is 22042 to 22063. This zone is important. Aggressive short-sellers may come in to stop the rally on a test of this zone. This could form a secondary lower top.

Buyers will try to take out this zone in an effort to form a new main bottom at 21951 on a breakout over 22132.

Forecast

The first resistance angle is 22004. This is followed by a cluster of levels at 22042, 22063 and 22068. The latter is the trigger point for a surge into 22100. This is the last potential resistance angle before the 22132 main top.

The inability to overcome 22004 will indicate the presence of sellers. Taking out today’s intraday low at 21951 could trigger an acceleration to the downside with the first target angle 21860.

We could see a technical bounce on the first test of 21860, but if it fails then look for the selling to extend into the major retracement zone at 21788 to 21707.

Basically, look for an upside bias to develop on a sustained move over 22004 and a downside bias on a sustained move under 21951.