E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 7, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The market is firming after the release of the U.S. Non-Farm Payrolls report. The headline number blew away the estimate, the unemployment rate increased but wages were sluggish.

The reaction to the news seems to be muted. This may be an indication that investors still need time to digest the report. It could also mean that the major players still haven’t returned from their Fourth of July vacations.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum seems to be trending lower since the July 3 high at 21508. A trade through this price will signal a resumption of the uptrend.

A trade through 21138 will change the main trend to down.

The market is currently reacting to a number of retracement levels. This suggests we may see a choppy, two-sided trade until the market breaks out of the range.

Forecast

Based on the current price at 21310, potential support levels come in at 21287, 21279 and 21234. If 21234 fails as support then look for a possible acceleration into the main bottom at 21138. This is followed by the main bottom at 21065.

Overtaking 21323 will signal the presence of buyers. This could trigger an acceleration into the next pair of retracement levels at 21383 and 21412. Overtaking 21412 could create enough upside momentum to challenge the main top at 21508.

Very confusing pattern and reaction. This may mean we may have to settle for a choppy, two-sided trade.