E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 24, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading slightly better shortly before the cash market opening. Volume is light ahead of today’s speech by Fed Chair Jerome Powell at 1400 GMT.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25885 will signal a resumption of the uptrend. A trade through 24955 will change the main trend to down.

The minor trend is also up. A trade through 25767 will make 25607 a new minor bottom.

The minor range is 25885 to 25607. Its 50% level or pivot at 25746 is controlling the early price action.

The main range is 24955 to 25885. Its retracement zone at 25420 to 25310 is the primary downside target. An uptrending Gann angle at 25403 passes through this zone, making it a valid downside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average today will be determined by trader reaction to the pivot at 25746.

A sustained move under 25746 will indicate the presence of sellers. Crossing to the weak side of the downtrending Gann angle at 25693 will indicate the selling is getting stronger. This could lead to a quick test into yesterday’s low at 25607.

If 25607 is taken out with conviction then look for an acceleration to the downside with the next targets 25420 and 25403. If this area fails as support then look for the selling to extend into 25310, followed by 25257.

Since the main trend is up, buyers could show up on a test of the 25420 to 25310 retracement zone.

A sustained move over 25746 will signal the presence of buyers. This is followed by a pair of downtrending Gann angles at 25789 and 25837. The latter is the last resistance angle before the 25885 main top.

Crossing to the strong side of a steep uptrending Gann angle at 25851 could put the index in a bullish position.

Keep an eye on the selling volume if 25607 is tested. The daily chart indicates there is plenty of room to the downside under this level with 25420 the next target.