E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 14, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is being supported by increased demand for higher-risk assets in reaction to the news that Russia and China may be working on a solution to end the war-of-words between the United States and North Korea.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 22132 on August 8.

The main range is 21444 to 22132. Its retracement zone at 21788 to 21707 is the primary downside target. Sellers tried to hit this zone last week, but buyers came in at 21790.

The new short-term range is 22132 to 21790. Its retracement zone is 21961 to 22001. This is a key area because bearish counter-trend sellers are going to come in on a test of this zone in an attempt to form a potentially bearish secondary lower top.

Bullish investors are going to try to take out this zone in an effort to make 21790 a new main bottom.

Forecast

Based on the current price at 21940 and the earlier price action, the direction of the Dow futures contract is likely to be determined by trader reaction to the uptrending angle at 21924.

A sustained move over 21924 will signal the presence of buyers. This could lead to a labored rally into 21961, 22100 and 22001. Overcoming 22001 will indicate the buying is getting stronger with the next two target angles coming in at 22068 and 22100. The latter is the last potential resistance angle before the 22132 main top.

A sustained move under 21924 will indicate the presence of sellers. The daily chart is open to the downside with the first target angle coming in at 21876. This is followed by 21788 to 21790.

Look for an acceleration to the downside if 21790 fails as support with potential targets 21707 to 21684.

Look for a bullish tone on a sustained move over 21924 and a bearish tone to develop on a sustained move under this angle.