E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 8, 2017 Forecast

September E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. Concerns over North Korea are weighing on prices today. Investors are being cautious ahead of the week-end because there are rumors that the rogue nation may test another nuclear weapon over the week-end.  Traders are also nervous over the potential economic impact Hurricane Irma will have on Florida.

Shares of major insurance companies are expected to weigh on the stock market today due to the losses from Hurricane Harvey and the expected losses from Hurricane Irma. Falling interest rates are expected to pressure bank stocks.

Technical Analysis

The main trend is up according to the daily swing chart, however, the price action indicates a secondary lower top may be forming. A trade through 21644 will change the main trend to down.

On the upside, resistance is a pair of retracement levels at 21794, 21841, 21855 and 21921. The tightest resistance cluster comes in at 21841 to 21855. If the market is getting ready to roll over to the downside then these retracement levels will stop any rally attempts.

If the selling pressure continues enough to change the main trend to down then the major retracement zone at 21635 to 21518 will be the primary downside target. This zone stopped the selling at 21579 on August 21.

Forecast

Based on the current price action, look for a bearish tone to develop on a sustained move under 21794 with potential targets at 21644 and 21635.

Overcoming 21794 will lead to a labored rally with 21841 to 21855 the first upside targets. Overcoming 21855 could trigger a spike into 21921. This is another trigger point for an acceleration to the upside with 22037 the next likely target.