E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 14, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open slightly better on Friday. Worries over an escalation of the trade dispute between the U.S. and China are keeping a lid on gains.

Helping to underpin the Dow is speculation the Fed may be nearing neutrality and may not have to raise rates very aggressively going forward. Some traders are drawing this conclusion because of weaker-than-expected Producer and Consumer Inflation reports earlier this week.

Earlier today the government reported that U.S. retail sales recorded their smallest gain in six months in August. The Commerce Department said retail sales edged up 0.1 percent last month, the smallest since February.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The market is straddling the late August top at 26185. In other words, there hasn’t been much of a breakout over this level. Volume is also light. A trade through 25764 will change the main trend to down.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract today is likely to be determined by trader reaction to the short-term uptrending Gann angle at 26148.

A sustained move over 26148 will indicate the presence of buyers. If this move creates enough upside momentum we could see a spike into the long-term uptrending Gann angle at 26299.

Crossing to the strong side of the angle at 26299 will put the Dow in an extremely bullish position.

A failure to hold the angle at 26148 could trigger an acceleration to the downside with the next target angles coming in at 25956 and 25860. The latter is the last potential support angle before the 25764 main bottom.