E-mini Dow Jones Industrial Average (YM) Futures Analysis – Weekly Inside Move Suggests Investor Indecision, Impending Volatility

September E-mini Dow Jones Industrial Average futures finished slightly lower last week, while trading inside the previous week’s range. This suggests investor indecision and impending volatility.

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 26185 will signal a resumption of the main trend. The market is in no position to change the trend to down, but it is in the window of time for a potentially bearish closing price reversal top, or a correction into a major support zone.

The minor trend is also up. A trade through 24955 will change the minor trend to down and shift momentum to the downside.

The minor range is 24955 to 26185. Its retracement zone at 25570 to 25425 is the first downside target. Since the main trend is up, buyers are likely to come in on a test of this zone.

The main range is 26672 to 23178. Its retracement zone at 25337 to 24925 is the main support. It is controlling the direction of the market. Holding above this zone will help the Dow sustain its upside bias.

The intermediate range is 23978 to 26185. Its retracement zone at 25082 to 24821 is another downside target.

The way the retracement levels are lined up, any selling pressure will be labored. In other words, it’s going to take a lot to drive this market sharply lower or change the minor or main trends.

Weekly Swing Chart Technical Forecast

Based on the inside move chart pattern, the direction of the September E-mini Dow Jones Industrial Average this week is likely to be determined by trader reaction to 26185 and 25805.

A sustained move over 26185 will reaffirm the uptrend and could create the upside momentum needed to challenge the contract high at 26672 over the near-term.

A sustained move under 25805 will signal the presence of sellers. This could generate the downside momentum needed to challenge the minor 50% level at 25570. This is followed by a pair of Fibonacci levels at 25425 and 25337.

The latter is the trigger point for a potential acceleration into 25082, 24925 and 24821.

Basically, look for an upside bias this week on a sustained move over 26185, and a downside bias this week on a sustained move under 25805. The way of least resistance is up. Any selling is likely to be labored.