E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 24, 2017 Forecast

September E-mini S&P 500 Index futures are getting a boost before the opening from an expected rise in retail stocks and bullish Fed talk. Traders are expecting Home Depot and Wal-Mart, a pair of Dow stocks to open higher. In other news, according to the CME Group, market expectations for a December rate hike are only 37.6 percent. Low rates are bullish for stocks.

Technical Analysis

The main trend is down according to the daily swing chart. However, upside momentum is building.

A trade through 21900 will change the minor trend to up. A move through 22067 will change the main trend to up.

On the downside, the key support zone is 21740 to 21702.

On the upside, the resistance levels are layered at 21823, 21856, 21881 and 21921.

Forecast

Based on the earlier price action, the direction of the Dow today is likely to be determined by trader reaction to the 50% level at 21823.

A sustained move over 21823 will signal the presence of buyers. This could lead to a labored rally into the series of resistance levels. The trigger point for an acceleration to the upside is 21921. If the buying is strong enough, investors may make a run at 22067.

A sustained move under 21823 will indicate the presence of sellers. The daily chart is open to the downside with 21740 to 21702 the next target.

Keep an eye on the price action and order flow at 21823 all session. This is the key pivot level controlling the direction of the market.