E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 23, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. Volume is light. Sellers are showing strength early amid concerns over an escalation of the trade war between the United States and China after Beijing retaliated with new tariffs against U.S. imports earlier in the session.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Today’s earlier lower-low turned 25885 into a new main top. A trade through this top will signal a resumption of the uptrend. The main trend changes to down on a trade through 24955.

The minor range is 25885 to 25676. Its 50% level or pivot at 25781 is controlling the direction of the Dow today.

The main range is 24955 to 25885. Its retracement zone at 25420 to 25310 is the primary downside target. An uptrending Gann angle also passes through this zone at 25339, making it a valid downside target also.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at 25723.

A sustained move over 25723 will indicate the presence of buyers. This could lead to a labored rally with potential resistance lined up at 25757, 25781, 25821 and 25853. The latter is the last potential resistance angle before the 25885 main top.

A sustained move under 25723 will signal the presence of sellers. If this creates enough downside momentum, we could see a steep sell-off. The daily chart is wide open to the downside under 25723 with the next major targets the 50% level at 25420, the uptrending Gann angle at 25339 and the Fibonacci level at 25310.

Just remember there is a lot of downside risk in the market. If the buying dries up and the selling is stronger, the Dow could plunge about 300 points over the next two days.