E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 18, 2015 Forecast

September E-mini Dow Jones Industrial Average futures are called steady-to-lower shortly before the cash market opening. The Dow traded to the upside earlier in the session, but the rally stalled at 17535, shortly before the 50% level at 17577.

The subsequent selling pressure put the Dow on the weak side of a short-term Fibonacci level at 17476. Trader reaction to this level will likely determine the direction of the market today.

Holding above 17476 will signal the presence of buyers. This could create enough upside momentum to challenge the 50% level at 17577.

Crossing to the bullish side of the steep uptrending angle at 17591 will put the market in a strong position with the next likely target a resistance cluster at 17695 to 17707.

A sustained move under the Fib level at 17476 will signal the presence of sellers. The first downside target is a 50% level at 17400.

Breaking 17400 could trigger a break into a support cluster at 17339 to 17335. Look for a technical bounce on the first test of this area, but be prepared for an acceleration to the downside if it fails as support. This could trigger a further break into a pair of uptrending angles at 17207 and 17143. The latter is the last potential support before the 17079 main bottom.

Watch the price action and read the order flow at 17476. This will tell us whether the bulls or the bears are in control today.