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James Hyerczyk
E-mini Dow Jones Industrial Average

September E-mini Dow Jones Industrial Average futures are trading higher on Monday shortly after the cash market opening. There was no follow-through to the downside following Friday’s bearish close. This may have brought in the buyers.

Fundamentally, investors seem to be ignoring the tensions in the Middle East, and are instead focusing on the upcoming meeting between U.S. President Trump and China President Xi Jinping at this weekend’s G20 summit in Osaka, Japan. Investors may be betting that a successful meeting brings the two economic powerhouses closer to a deal that ends the trade dispute.

At 13:54 GMT, September E-mini Dow Jones Industrial Average futures are trading 26792, up 95 or +0.34%.

Daily Sept E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside. A trade through 26922 will signal a resumption of the uptrend. This could lead to a test of the October 3, 2018 main top at 27031.

Friday’s closing price reversal top was confirmed earlier today when sellers took out 26671. However, there was very little follow-through to the downside.

The main trend will change to down on a trade through 25897. This is not likely today, but there is room for a normal 50% to 61.8% correction.

The short-term range is 25897 to 26922. Its retracement zone at 26410 to 26289 is the primary downside target.


Daily Technical Forecast

Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 26793.

Bullish Scenario

A sustained move over 26793 will indicate the presence of buyers. If this move creates enough upside momentum then look for a rally into the closing price reversal top at 26922. Taking out this level will negate the closing price reversal top. This could trigger a rally into 27031.

Bearish Scenario

A sustained move under 26793 will signal the presence of sellers. If this generates enough downside momentum then look for the selling to possibly extend into the main uptrending Gann angle at 26546. Buyers could come in on the first test of this angle, but if it fails then look for the selling to possibly extend into the short-term 50% level at 26410, followed by a short-term uptrending angle at 26345 and a Fibonacci level at 26289.

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