E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 12, 2015 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. The market sold-off after the People’s Bank of China devalued the Yuan for the second consecutive day.

The overnight selling pressure took out last week’s low at 17221. This price is now minor resistance. Overtaking this level will indicate that the earlier selling pressure was triggered by sell stops rather than fresh shorting.

If the buying is strong enough to sustain a rally over 17221 then watch for a possible test of a downtrending angle at 17467. This angle stopped the market at 17721 on July 31. It also provided resistance earlier in the week on Monday and Tuesday.

Taking out 17467 with conviction could trigger an acceleration into 17721. Taking out this top will change the main trend to up on the daily chart. This could trigger a further acceleration into the next downtrending angle at 17771.

If sellers come in hard after the cash market opening then look for a drive into the major 50% level at 17005. This is followed by a downtrending angle at 16859. Crossing to the weak side of this angle will put the market in an extremely weak position with the next target a major Fibonacci level at 16711.

This Fibonacci level is the last major support. Look out to the downside if this angle is taken out with conviction.