E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 7, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading slightly higher shortly before the cash market opening. The futures contract reached a new all-time high early in the session before retreating.

The main trend is up according to the daily swing chart.

Today is also the tenth day up from the last swing bottom at 21444. This puts it in the window of time for a potentially bearish closing price reversal top. This chart pattern will not mean the trend is changing to down, but it will indicate that the selling is greater than the buying at current price levels.

We’ve already had the higher-high, now all we need is the lower close. If the pattern does form and is confirmed on Tuesday, we could see the start of a 2 to 3 day break. This chart pattern often leads to a 50% correction of the last rally. Currently, the rally is 21444 to 22081. This will make 21763 the next major downside target.

The angle that the market has been following since July 24 comes in at 22084 today. This angle is controlling the direction of the market.

Overtaking 22084 and sustaining the rally will put the Dow in a bullish position.

A failure to overcome 22084 will signal the presence of sellers. The daily chart shows there is room to the downside, but the Dow is not going to break unless the selling volume is greater than the buying volume.

The next major downside target today is the support cluster at 21764 to 21763.

Watch the price action and read the order flow at 22084 all session. Trader reaction to this angle will tell us if the buying is getting stronger or weaker.