E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 25, 2015 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The direction of the market during the regular session will likely be determined by trader reaction to a pair of downtrending angles at 16255 and 16283.

A sustained move over 16283 should trigger a fast rally into the short-term 50% level at 16410. For some, this is the objective of the short-covering rally. This could lead to selling on the initial test of this level.

Taking out 16410 with conviction could trigger a surge into the Fibonacci level at 16676. This is followed closely by a downtrending angle at 16895.

The daily chart opens up to the upside over 16895 with the next major target a potential resistance cluster t 17179 to 17215.

If sellers come in to defend the downtrend at 16283 to 16295 then look for a pullback into at least 15813. Buyers are going to try to form a secondary higher bottom at this level. If successful then look for a resumption of the earlier rally.

If 15813 fails on the pullback then look for a possible test of yesterday’s low at 15285. The next target under this level is a steep downtrending angle at 14491.

Watch the price action and read the order flow at 16283. Trader reaction to this price should tell us if the bulls have regained control or if the bears are still calling the shots.