E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25287, Weakens Under 25198

Dow E-mini futures are trading higher early Tuesday as demand for risk returns to the market after the blue chip average’s first four day setback since June. Despite today’s bid, investors are still monitoring the situation in Turkey, which has been the main catalyst behind the selling pressure since last week.

At 0552 GMT, September E-mini Dow Jones Industrial Average futures are trading 25263, up 49 or +0.19%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25087 will change the main trend to down. The uptrend will resume when 25661 is taken out.

The main range is 24912 to 25661. Its retracement zone at 25287 to 25198 is currently being tested.

The intermediate range is 25087 to 25661. Its 50% level or pivot is 25374.

The short-term range is 25661 to 25141. Its retracement zone is 25402 to 25464.

Combining the retracement zones makes 25374 to 25402 a potential resistance cluster. This area is very important to the structure of the chart pattern. Aggressive counter-trend sellers may come in on a test of this zone in an effort to form a new secondary lower top. Trend traders are going to try to take out this zone in an effort to make 25141 a new main bottom.

The major support is a 50% level at 24925.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the 50% level at 25287 and the Fibonacci level at 25198.

Overtaking and sustaining a move over 25287 will signal the return of buyers. This could trigger a move into the resistance cluster at 25374 to 25402.

The inability to overcome 25287 will indicate that sellers are coming in to prevent a rally. If this creates enough downside momentum then look for a drive into 25198. Taking out this level will indicate the selling is getting stronger. This could lead to a test of yesterday’s low at 25141. If this is taken out then look for a drive into the main bottom at 25087. This is the trigger point for a potential acceleration into 24925 and 24912.