E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 11, 2015 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. There was no follow-through to the upside after yesterday’s strong rally. The market also remained inside yesterday’s range all session, indicating that today could be a volatile session.

The main trend is down according to the daily swing chart. The short-term range is 17721 to 17221. Its retracement zone is 17471 to 17530. Yesterday, the market closed over this zone, but buyers failed to come in during the pre-market session to support the potentially bullish chart formation.

The pre-market break below the retracement zone makes the 50% level at 17471, the downtrending angle at 17499 and the 61.8% level at 17530, resistance levels today.

A sustained move under 17471 could trigger an acceleration to the downside with the uptrending angle at 17285 the next major downside target. This is the last major support angle before the 17221 main bottom.

Taking out 17221 could trigger a huge break with the next potential target a major 50% level at 17005.

A sustained move over the Fibonacci level at 17530 will be a sign of strength. The daily chart opens up over this level with the next target a 50% level at 17649. This is followed by the main top at 17721 and the Fibonacci level at 17749.

Based on the current price at 17432, the direction of the market during the regular session is likely to be determined by trader reaction to the 50% level at 17471.