E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 16, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is being underpinned by increased demand for risky assets. Strong earnings from Walmart are helping to generate the strength.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24955 will signal a resumption of the downtrend. A move through 25661 will change the main trend to up.

The minor trend is also down. Today’s price action helped make 24955 a new minor bottom.

The main range is 23978 to 25661. Its retracement zone at 24820 to 24621 is the major support.

The short-term range is 25661 to 24955. Its retracement zone at 25308 to 25391 is currently being tested. Sellers are trying to stop the rally in an effort to form a secondary lower top. Buyers are going to try to breakout over this range in an effort to make 24955 a new main bottom.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average today is likely to be determined by trader reaction to the short-term Fibonacci level at 25391.

A sustained move under 25391 will signal the return of sellers. This could lead to a quick test of the 50% level at 25308, followed by the downtrending Gann angle at 25213.

Crossing to the weak side of 25213 will indicate the selling is getting stronger. This could drive the market into the long-term uptrending Gann angle at 25002, followed by yesterday’s low at 24955.

A sustained move over 25391 will indicate the presence of buyers. This is followed closely by a downtrending Gann angle at 25437. This is a potential trigger point for an acceleration into the next two downtrending Gann angles at 25549 and 24605. The latter is the last potential resistance before the 25661 main top.

Basically, the Dow will strengthen over 25391 and weaken under 25300.