E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 22, 2017 Forecast

A threat by North Korea to detonate a nuclear bomb in the Pacific Ocean spooked the markets overnight, leading investors to shed risky assets and move the proceeds into a safe haven environment. This is putting pressure on December E-mini Dow Jones Industrial Average futures, leading to expectations of a “risk off” trading session.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but the overnight price action has helped form a new main top at 22389. If the selling continues, we could see a test of last week’s low at 22219. A close under this level will produce a potentially bearish closing price reversal top.

The main range is 21555 to 22389. If the selling continues over the near-term then look for an eventual break into its retracement zone at 21972 to 21874.

Daily Forecast

Based on the current price at 22300 and the earlier price action, the direction of the Dow today is likely to be determined by trader reaction to the downtrending angle at 2499.25.

A sustained move under 2499.25 will signal the presence of sellers. The daily chart is wide open to the downside so they could press this market all day until they eventually reach support which is a long-term uptrending angle at 22099. This is followed closely by the previous main top at 22089.

The old top at 22089 is the trigger point for another acceleration to the downside with potential targets at 21972, 21827 and 21874.

A sustained move over 2499.25 will indicate the presence of buyers. The first two target angles come in at 22357 and 22373. The latter is the last potential resistance angle before the 22389 main top. Taking out the top will signal a resumption of the uptrend.

A close under 22219 will produce a potentially bearish weekly closing price reversal top.