E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 6, 2015 Forecast
September E-mini Dow Jones Industrial Average futures are trading flat shortly ahead of the cash market opening. The Dow is consolidating like the other major indices, but there is definitely a downside bias to this market.
The main trend is down according to the daily swing chart. The main range is 18075 to 17319. Its retracement zone at 17697 to 17786 is the primary upside target today. This zone stopped the rally last week at 17721.
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The short-term range is 17319 to 17721. Its pivot is 17520. This price is controlling the short-term direction of the market.
A sustained move under 17520 will signal the presence of sellers. The first downside target is an uptrending angle at 17447. The next angle comes in at 17383. This is the last major angle before the 17319 main bottom.
The daily chart opens up to the downside under 17319 with the next target a steep downtrending angle at 17115. Crossing to the weak side of this angle will put the Dow in an extremely bearish position with 17005 the next major target.
A sustained move over the pivot at 17520 will signal the presence of buyers. The first objective is a potential resistance cluster at 17575 to 17595. Since the trend is down, sellers may come in on a test of this area. However, 17595 is also a trigger point for an upside breakout with 17697 to 17786 the primary upside target.
Based on the current price at 17467, the early tone of the market is likely to be determined by trader reaction to the uptrending angle at 17447. Watch and read the order flow and price action at this angle to determine whether the bulls or the bears are in control.