E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 28, 2015 Forecast
September E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. Buyers tried to continue yesterday’s rally, but sellers backed away when the Dow reached a short-term Fibonacci level.
This level is important because sellers are going to try to produce a secondary lower top while buyers are going to try to trigger an acceleration to the upside.
The main range is 17535 to 15285. Its retracement zone is 16410 to 16676. A downtrending angle also passes through this zone at 16511, making it a valid target also.
Look for a breakout to the upside if 16676 is taken out with conviction. This could trigger a further rally into a pair of downtrending angles at 17023 and 17083. The next two targets over 17083 are 17279 and 17407.
A failure at 16676 will signal the presence of sellers. The break, however, will be labored because of the downtrending angle at 16511 and the 50% level at 16410. Breaking the 50% level will be a sign that the selling is getting stronger. However, don’t expect an acceleration to the downside unless the angle at 16309 is taken out with conviction.
The first target under 16309 is 16091. The first major uptrending angle comes in at 15797.
Watch the price action and read the order flow at 16676. Trader reaction to this price will tell us if the bulls or the bears are in control.