E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 6, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. Investors seem to be a little more relaxed today after yesterday’s steep sell-off. Tuesday was the first day that I sensed a real concern by investors about the North Korean situation. The price action suggests long-term investors may have been trimming positions until there is some clarity as to how the U.S. will respond to the latest nuclear weapons test by the rogue nation.

Technical Analysis

The main trend is up according to the daily swing chart. However, yesterday’s steep sell-off shifted momentum to the downside.

A trade through 22037 will signal a resumption of the uptrend. A move through 21644 will change the main trend to down with the next target a bottom at 21579.

The major 50% to 61.8% level is 21635 to 21518. This zone stopped the selling at 21579.

The intermediate range is 22132 to 21579. Its retracement zone is 21855 to 21921. This zone is acting like resistance.

The short-term range is 21644 to 22037. Its retracement zone is 21841 to 21794. This zone could also develop into resistance.

The combination of the short-term and intermediate retracement zones makes their 50% levels at 21841 to 21855 an important resistance area today.

Forecast

The key area to watch today is a price cluster at 21794 to 21804.

A sustained move over 21804 should drive the Dow into the pair of 50% levels at 21841 to 21855. Overcoming 21855 could trigger an acceleration into the Fibonacci level at 21921. This is followed by a downtrending angle at 21972.

The inability to overcome 21794 will signal the presence of sellers. This could drive the Dow into the next two uptrending angles at 21724 and 21684. The latter is the last potential support angle before the 21644 main bottom and the major 50% level at 21635.

If 21635 fails then look for the selling to extend into 21579 then 21518.