E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 16, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are called better based on the pre-market trade. The market is being underpinned by strong housing numbers, but the key market moving event is likely to be the FOMC meeting minutes, due out at 1800 GMT. Investors are hoping for clarity from the Fed regarding its plans for another rate hike later this year and its plan to trim its balance sheet.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 22132 will reaffirm the uptrend. A move through 21790 will change the main trend to down.

The market is trading on the strong side of the short-term retracement zone at 22001 to 21961. This is helping to give the market an early upside bias. Both levels should be considered support.

The major support zone is 21788 to 21707. This zone stopped the selling late last week.

Forecast

Based on the current price at 22022, the direction of the Dow today is likely to be determined by trader reaction to 22001.

Overtaking the downtrending angle at 22036 will indicate the buying is getting stronger. This could lead to a surge into the next downtrending angle at 22084. This is the last potential resistance angle before the 22132 main top.

Support is clustered at 22001, 21988, 21982 and 21961.

The daily chart starts to open up to the downside under 21961. A move under 21940 will indicate the selling is getting stronger with the next target angle coming in at 21886.

Basically, look for a bullish tone on a sustained move over 22036 and for a bearish tone to develop under 21940.