E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 25, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open sharply higher in reaction to strong earnings from Caterpillar and United Technologies. The early session rally has put the Dow in a position to make a new all-time high.

Despite the strong rally, volume is expected to come in below average as investors prepare for Wednesday’s U.S. Federal Reserve interest rate decision and monetary policy statement. The Fed is widely expected to leave its benchmark interest rate unchanged. However, investors will be looking for clues in its statement for information on future rate hikes.

Additionally, investors should continue to monitor the situation in Washington for new developments regarding the Trump’s campaign involvement with Russia as well as any news involving Trump’s economic agenda, namely health and tax reform.

Technically, the sideways, choppy-trade recently has been mostly controlled by a number of retracement zone.

The current short-term range is 21628 to 21416. Its 50% level or pivot is 21522. Holding above this level will give the Dow an upside bias today. Taking out 21624 and 21628 will signal a resumption of the uptrend. A trade through 21416 will change the main trend to down.

Additional retracement zone support is 21427, 21383 and 21380.

I think enough upside momentum is there to take out 21628, but with any new all-time high, continue to watch for a possible closing price reversal top especially ahead of Wednesday’s Fed announcements