E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 8, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening.

The market is starting to show signs of fatigue. Firstly, yesterday’s high was hit during the pre-market session and the market never traded higher during the cash market session. Secondly, it is starting to pull away from the steep uptrending Gann angle that had guided the market higher for 11 sessions.

The move doesn’t mean the trend is changing, but it is an early sign of a shift in momentum.

The key angle comes in at 22148 today.

Overtaking 22081 will signal a resumption of the uptrend with 22148 the next target. Crossing to the strong side of this angle will put the Dow in an extremely bullish position.

Taking out 22019 will make 22081 a new minor top. We haven’t seen one of those since early July.

The market is also in the window of time for a closing price reversal top. This will occur if a breakout over 22081 fails and the market closes lower.

The daily chart shows there is plenty of room to the downside. The nearest uptrending angle comes in at 21796.

If there is a big sell-off then the retracement zone at 21763 to 21687 will become the primary downside target.

Volume is extremely low so be careful selling weakness and buying strength. However, the low volume could be beneficial at some point if the bids are wide. If sellers start to press the market and buyers keep lowering the bids then the market could plunge especially if the size on the bids is relatively large. This is because the market chases size. It’s more efficient to match a large sell order with a large buy order then to try to pick off all the small trades in between.