E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 10, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Momentum continues to drive the market higher, however, it is showing a slight reaction to a Fibonacci/Gann angle combination.

Today is the seventh day up from the last main bottom. Therefore, today’s session begins with the Dow in the window of time for a closing price reversal top. This pattern will indicate the selling is greater than the buying at current price levels.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher.

The key level to watch is yesterday’s close at 24774. Given the prolonged move up in terms of price and time, a move under this level will put the Dow in a position to form a closing price reversal top. This could trigger the start of a 2 to 3 day set-back.

The main range is 25418 to 23978. Its retracement zone at 24698 to 24868 is currently being tested. This zone is controlling the near-term direction of the market.

On the downside, the major support zone is 24459 to 24233.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the price cluster at 24868 to 24874.

A sustained move under 24868 will indicate the presence of sellers. This could drive the market back to a downtrending Gann angle at 24778. If this angle fails then look for the selling to extend into the 50% level at 24698. This level is the trigger point for an acceleration to the downside.

A sustained move over 24874 will signal the presence of buyers. This will indicate the buying is getting stronger. This especially bullish signal could drive the market into the downtrending Gann angle at 25098.

Essentially, we’re looking for a strong upside bias if buyers can sustain a rally over 24874 and a strong downside bias if sellers can sustain a move under 24778.

Also watch the price action and read the order flow at 24774. A close under this level will create a potentially bearish closing price reversal top.