E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 29, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower but the market has recovered a little from the early session weakness that was fueled by a gap-lower opening. We’re in an event-driven market but the Dow so far is holding up nicely to the early selling. The price action suggests the early selling was liquidation. Anyone who sold weakness may be trapped at today’s low.

Technical Analysis

The main trend is down according to the daily swing chart. The series of lower tops and lower bottoms is proof of the downtrend.

A trade through 21579 will signal a resumption of the downtrend. There is plenty of room to the downside under this bottom with the next major target coming in at 21226. A trade through 21900 will change the main trend to up.

The major downside target is a retracement zone at 21635 to 21518. This zone stopped the selling at 21579 earlier in the month.

On the upside, the short-term retracement zone at 21702 to 21740 is providing resistance. This followed by layers of potential resistance at 21823, 21856, 21881 and 21921.

Forecast

I’m looking for a bullish tone to develop on a sustained move over 21740 and a bearish tone on a sustained move under 21702.

Any rallies could be a labored event. The bigger moves are likely to occur on the downside since the support levels are spread apart.