E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 26, 2016 Forecast

September E-mini Dow Jones Industrial Average futures are trading slightly lower shortly before the regular session opening. Yesterday’s lower-low helped make 18565 a new main top.

The main trend is up according to the daily swing chart. However, the price action suggests momentum may be getting ready to shift to the downside. A trade through 18565 will reaffirm the uptrend. A trade through 18266 will turn the minor trend to down.

The short-term range is 18266 to 18565. Its 50% level or pivot at 18416 appears to be controlling the short-term direction of the market.

The intermediate range is 17618 to 18565. Its retracement zone at 18092 to 17980 is the primary downside target.

Based on Monday’s close at 18420 and the early price action, the direction of the market today will likely be determined by trader reaction to 18416.

A sustained move over 18416 will indicate the presence of buyers. Overtaking the downtrending angle at 18437 will indicate the buying is getting stronger. This could trigger a rally into 18501 and 18514. Crossing to the strong side of 18514 will put the Dow in a bullish position. Taking out 18565 will signal a resumption of the uptrend.

A sustained move under 18416 will signal the presence of sellers. The daily chart is wide open under yesterday’s low at 18378 with potential targets coming in at 18266 and 18241.

Look for an upside bias today on a sustained move over 18437 and a downside bias on a sustained move under 18378.