E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 18, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is inside yesterday’s range, suggesting investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Thursday when the market took out the previous swing bottom at 21790. A trade under yesterday’s low at 21690 will signal a resumption of the downtrend.

The main range is 21444 to 22132. The market is currently trading inside its retracement zone at 21788 to 21707. Trader reaction to this zone will determine the near-term direction of the market.

Forecast

Based on the current price at 21745, the direction of the Dow today is likely to be determined by trader reaction to the uptrending angle at 21748.

Overcoming 21748 and sustaining the move will indicate the presence of buyers. This could lead to a move into 21788, followed by a downtrending angle at 21811. This angle is a possible trigger point for a surge into 21876 then 21939.

A failure to overcome 21748 will signal the presence of sellers. This could drive the market into a Fibonacci level at 21707, followed by yesterday’s low at 21690.

Look for an acceleration to the downside if 21690 is taken out with conviction. This could trigger a steep break into the next uptrending Gann angle at 21596.