E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 11, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. Some traders are blaming the sideways price action on the summer blues. Some are saying its concern over Yellen’s testimony before Congress on Wednesday and Thursday and the start of earnings season on Friday. Others are saying the market is not only going through a sector rotation, but also an asset allocation.

The sector rotation is investors moving money from stocks that benefited from low interest rates into stocks that will benefit from rising interest rates. The asset allocation if money moving from stocks into bonds. It may not be a lot of money, but just enough to disrupt the trade.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 21508 will signal a resumption of the uptrend. A move through 21138 will change the trend to down.

The market is currently caught between a number of retracement levels. This is causing the choppy, two-sided trade.

Forecast

Based on the current price at 21358, the resistance and potential upside breakout levels are 21383 and 21412.

On the downside, potential support levels are layered at 21323, 21287, 21279 and 21234.

Remember, it’s not about the levels, it’s about the volume on the breakouts. A breakout on low volume will fail. Make sure you know what the average volume is because you’ll need to know if the selling or buying volume is better than average.