E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 4, 2015 Forecast
September E-mini Dow Jones Industrial Average futures are trading slightly lower shortly before the cash market opening.
The main trend is down according to the daily swing chart. The short-term range is 17319 to 17721. Its pivot is 17520. Trader reaction to this price will set the tone for the day.
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A sustained move under 17520 will signal the presence of sellers. The first target is an uptrending angle at 17415. The last angle before the 17319 main bottom comes in at 17367.
A trade through 17319 will reaffirm the downtrend. The daily chart opens up substantially under this level with the next major comment coming in at 17005. Crossing to the weak side of a steep downtrending angle at 17243 will also put the market in an extremely bearish position.
Crossing to the bullish side of an uptrending angle at 17511 and the pivot at 17520 will signal the presence of buyers. The daily chart opens up to the upside over this level with the next target a downtrending angle at 17659. This angle is important because it stopped a rally on July 31 at 17721.
The main range is 18075 to 17310. Taking out 17721 could create enough upside momentum to trigger a rally into its retracement zone at 17697 to 17786.
The direction of the market today is likely to be determined by trader reaction to the 50% level or pivot price at 17520. Watch and read the price action at this level. This will tell us whether the bulls or the bears are in control.