E-mini Dow Jones Industrial Average (YM) Futures Analysis – August 3, 2017 Forecast
September E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.
There was no follow-through to the upside following yesterday’s historic rise over 22,000 to 22025. Floor traders and CNBC may have been excited by the news, but the price action suggests investors didn’t care enough to drive the market higher during the pre-market session.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through 22025 will signal a resumption of the uptrend. Today’s session also begins with the market in the window of time for a potentially bearish closing price reversal top. This means there is no guarantee that a new high will signal the presence of aggressive buyers.
The key angle to watch today comes in at 21956. This angle has guided the market higher since the main bottom was formed at 21444 on July 24. A sustained move on the weak side of this angle will signal the presence of sellers. Holding above this angle will indicate that buyers are coming in to defend the trend and the upside momentum.
The short-term range is 21444 to 22025. If sellers come in hard on a break under 21956 then its retracement zone at 21735 to 21666 will become the primary downside target.
Watch the price action and read the order flow at 21956 all session. This will tell us if the buyers or sellers are in control.
This article was originally posted on FX Empire
