E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 27, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open flat based on the pre-market trade. The market has shown little reaction to today’s U.S. Gross Domestic Product report which came in as expected at 4.1%.

At 1247 GMT, September E-mini Dow Jones Industrial Average futures are trading 25512, down 13 or -0.05%.

Most of the support for the Dow is coming from the easing of trade tensions between the United States and the European Union. There are rumors that the U.S. and the EU may work together to get China to agree to end unfair trade practices.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The first target at 25555, the March 12 top, is currently being tested. A trade through 24912 will change the main trend to down.

The major support is the long-term Fibonacci level at 25337 and the long-term 50% level at 24925. This retracement zone is controlling the longer-term direction of the Dow.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to 25555.

A sustained move over 25555 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a drive into the February 27 main top at 25868.

A sustained move under 25555 will signal the presence of sellers. This could trigger a pullback into 25337. The daily chart opens up to the downside under this level with the next two targets 24925 and 24912.

The Dow is also susceptible to a possible closing price reversal top. A trade under yesterday’s close at 25525 will put the market in a position to form a reversal top. This move will not mean the trend is getting ready to turn lower, but it will indicate the selling is greater than the buying at current price levels.