E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 9, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. Technical factors are contributing to the market’s strength with the Dow rapidly pulling away from a retracement zone that had provided resistance for months.

Buyers seem to be shrugging off the lingering trade dispute been the United States and China as well as potentially negative developments in the U.K. over Brexit. Investors are reacting to a strong Chinese Yuan and stronger markets in Asia.

The jobs report is also providing buyers with fuel on two fronts. Firstly, the amount of the number of jobs added indicates a strong economy. Secondly, slower than expected wage growth suggests the Fed may not have to be too aggressive when raising rates if the trend continues.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of a closing price reversal bottom on June 28.

The minor trend is up. This is contributing to the stronger upside momentum.

The major support is the retracement zone at 24459 to 24233.

The main range is 25418 to 23978. Its retracement zone at 24698 to 24868 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the main 50% level at 24459.

A sustained move over 24459 will signal the presence of buyers. If this move continues to generate enough upside momentum, we could see a drive into the 50% level at 24698. This is followed by a downtrending Gann angle at 24810 and a Fibonacci level at 24868.

Since the main trend is down, sellers could show up on a test of 24698 to 24868.

A sustained move under 24459 will indicate the presence of sellers. This could drive the Dow back into an uptrending Gann angle at 24362. This angle has been guiding the market higher for six trading sessions. If it fails then look for a steep break into 24233.