E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – August 2, 2019 Forecast

September E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. Weighing on the market early in the session was continued pressured following President Trump’s surprise announcement of new tariffs on China starting on September 1.

However, traders are attempting to claw back earlier losses following the release of a mixed U.S. jobs report. The U.S. economy added 164,000 jobs in July, meeting the forecast. Wages topped analyst expectations. They rose 3.2% on a year-over-year basis. The month to month gain was 0.3% versus a 0.2% estimate. The unemployment rate rose slightly to 3.7%.

At 13:25 GMT, September E-mini Dow Jones Industrial Average futures are at 26524, down 19 or -0.07%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on July 25 when sellers took out 27057. It was reaffirmed on Thursday when 26657 was violated and earlier today when 26445 was penetrated.

The market isn’t close to changing the trend to up, but it is down 14 sessions from the 27397 top on July 15. This puts it inside the window of time for a potentially bullish closing price reversal bottom. This could lead to the start of a 2 to 3 day counter-trend rally.

The main range is 25897 to 27397. Its retracement zone at 26647 to 26470 is controlling the near-term direction of the market.

Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to a pair of Gann angles at 26501 and 26457. These angles are straddling the Fibonacci level at 26470.

Bullish Scenario

A sustained move over 26501 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into the 50% level at 26647. This is a potential trigger point for an acceleration to the upside with the next major target coming in at 26949.

Bearish Scenario

A sustained move under 26457 will signal the presence of sellers. The daily chart is wide open under this angle with the next major target angle coming in at 26177. Look for a technical bounce on the first test of this angle. If it fails then look for the selling to possibly extend into the next uptrending Gann angle at 26037. This is the last potential support angle before the 25897 main bottom.