E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 30, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower after spiking to the upside following the release of stronger-than-expected ADP private sector data and a robust quarterly preliminary GDP report.

Technical Analysis

The main trend is up according to the daily swing chart. The trend turned higher on a trade through 21900 earlier in the session. The new main bottom is 21644.

A move through 21959 will signal a resumption of the uptrend with the next two targets coming in at 22067 and 22132. I’m not sure why the buying stopped today at 21959, but I suspect it means that investors aren’t interested in buying strength. If this is true then buyers are more likely to come in on a pullback into a support area.

The main range is 22132 to 21579. Its retracement zone is 21856 to 21921. Although the market took out this area, falling back below it will turn it back into resistance.

On the downside, potential support targets are an intermediate pivot at 21823 and a short-term retracement zone at 21802 to 21764.

Forecast

Based on the current price at 21852 and the earlier price action, the direction of the Dow today is likely to be determined by trader reaction to 21856.

A sustained move under 21856 will signal the presence of sellers. This could lead to a labored break into 21823, 21802 and 21764. Since the trend is up, buyers could come in at any of these levels.

If 21764 fails as support, however, we could see a steep drop into 21644 to 21635.

Crossing to the strong side of the 50% level at 21856 will indicate the return of buyers. This could create a labored rally into 21881, 21921 and 21959.

Taking out 21959 with conviction could drive the Dow sharply higher with 22067 the next likely target.