E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 12, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. The market is trying to follow-through to the upside after yesterday’s steep sell-off. Tuesday’s price action suggests investors stand ready to buy dips.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the main top at 21508 on July 3. Taking out this top will signal a resumption of the uptrend.

A move through 21226 will negate yesterday’s reversal bottom and change the minor trend to down. Taking out 21138 will turn the main trend to down.

Forecast

Based on the current price at 21393 and the earlier price action, the direction of the Dow today is going to be determined by trader reaction to the short-term Fibonacci level at 21400.

A sustained move over 21400 will signal the resumption of the uptrend. The daily chart indicates there is plenty of room to rally if buying volume comes in strong. The next potential target is 21508.

The inability to overcome 21400 will signal the presence of sellers. This could trigger a stair-step break with potential targets at 21367, 21323, 21287, 21279 then 21234.

However, we should continue to watch for price action like we saw on Tuesday because volume is extremely low.