E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 2, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Investors are dumping stock on trade war fears and rising interest rates.

Daily Swing Chart 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 on July 27 at 25572 and the subsequent confirmation on Monday.

A trade through 24912 will change the main trend to down. A move through 25572 will negate the closing price reversal top and signal a resumption of the uptrend.

The short-term range is 24912 to 25572. Its retracement zone is 24242 to 25164. Trading on the weak side of this retracement zone is helping to give the Dow a downside bias. This zone should be considered resistance along with the major Fib level at 25337.

The next downside target is the major 50% level at 24925.

The main range is 23978 to 25572. Its retracement zone at 24775 to 24587 is the primary downside target. Counter-trend buyers could come in on a test of this retracement zone.

Daily Swing Chart 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 Fib at 25164.

A sustained move under 25164 will indicate the presence of sellers. This could trigger a break into 24925 and 24912.

If 24912 fails as support then look for the selling to accelerate into 24775 then 24611 and 24587.

A sustained move over 25164 will signal the return of buyers. This could lead to a labored rally with early targets at 25242 and 25337. The rally will pick up momentum over 25337 with 25572 the next target.

The biggest potential break is likely to occur between 25164 and 24912.