E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 5, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. Investors are reacting to reports that North Korea is planning another nuclear weapons test.

Technical Analysis

The main trend is up according to the daily swing chart. However, the gap lower opening is suggesting a shift in momentum to the downside.

A trade through 22037 will signal a resumption of the uptrend.

The main range is 22132 to 21579. Its retracement zone at 21921 to 21855 is currently being tested.

The short-term range is 21644 to 22037. If the selling pressure continues then its retracement zone at 21841 to 21794 will become the primary downside target. Since the main trend is up, buyers are likely to show up on a test of this zone.

Forecast

Based on the current price at 21912 and the earlier price action, the direction of the market the rest of the session is likely to be determined by trader reaction to the Fibonacci level at 21921.

A sustained move under 21921 will indicate the presence of sellers. This could trigger a break into a pair of 50% levels at 21855 to 21841. This is followed by an uptrending angle at 21804 and a Fibonacci level at 21794.

A sustained move over 21921 will signal the presence of buyers. This could create enough upside momentum to challenge a resistance cluster at 21964 to 21972. This is also the trigger point for an acceleration into 22037 and 22052.

The angle at 22052 is the last potential resistance angle before the 22132 main top.