E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 20, 2015 Forecast

September E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. The rapid sell-off yesterday and today has put the market in a position to challenge the main bottom at 17079. This could lead to a test of a major 50% level.

Based on the current price at 17152, the next downside target is an uptrending angle at 17127. This is the last major angle before the 17079 main bottom. Taking out this bottom will reaffirm the downtrend.

The main trend is down on the daily chart. The main range is 15760 to 18250. The first target under 17079 is the 50% level at 17005. There may be a technical bounce on the first test of this level. However, this level is also a trigger point for an acceleration to the downside with the next major target a Fibonacci level at 16711.

Holding above 17079 will mean that buyers are coming in to prevent a steep sell-off. A sustained move over 17127 will signal the presence of buyers. The rally will get stronger if buyers can overcome 17175.

The best upside target is a price cluster at 17271, 17275 and 17279. This area stopped the market earlier in the session. Overcoming 17279 could trigger a strong surge into 17407 then another resistance cluster at 17463 to 17471.

Watch the price action and read the order flow at 17079. This will tell us whether the bulls or the bears are in control.