September E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is posting an inside move which suggests investor indecision and impending volatility.
A trade through 24628 will signal a resumption of the uptrend.
An extended move through this level with increasing volume will indicate the buying is strong and real.
The inability to overcome this high will signal the presence of sellers and that buyers are reluctant to chase this market higher at current price levels.
Taking out 24628 then breaking back below Friday’s close at 21595 will also signal the presence of sellers. This will also put the Dow in a position to form a potentially bearish closing price reversal top. It will also indicate that the selling is greater than the buying at current price levels.
If a closing price reversal top forms then the short-term range becomes 21226 to 21628. This would make 21427 to 21380 the primary downside target.
Trader reaction to 21628 will tell us if the buying is getting stronger or if sellers are starting to step in. A sell-off wouldn’t necessarily mean the trend is changing, but it could indicate that investors are looking for value.