E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 17, 2018 Forecast

September E-mini Dow Jones Industrial Average futures are trading nearly flat shortly before the cash market opening after giving back earlier gains. The Dow is performing better than the other major indexes due to its limited exposure to technology and energy stocks. Banks stocks are also being supportive.

Today, investors will get the opportunity to react to the congressional testimony of Fed Chair Jerome Powell. He is expected to reiterate the Fed’s call for at least two more rate hikes this year and the central bank’s bullish assessment of the economy. He could rattle investors a little if he talks about the negative impact of tariffs on the economy.

E-mini Dow Jones Industrial Average
Daily September E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on June 28. A trade through 25418 will change the main trend to up.

The minor trend is up. A trade through 24611 will change the minor trend to down and shift momentum to the downside.

Currently, the Dow is trading inside yesterday’s range which indicates investor indecision and impending volatility. A trade through 25090 will signal a resumption of the uptrend. A move through 24962 will make 25090 a new minor top.

On the downside, the first support is a Fibonacci level at 24868. This is followed by a short-term 50% level at 24851 and a short-term Fibonacci level at 24794. The final support before a steep sell-off is the 50% level at 24698.

Daily Technical Forecast

Based on the early trade, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the downtrending Gann angle at 25018.

A sustained move over 25018 will indicate the presence of buyers. This could lead to a retest of yesterday’s high at 25090. Taking out this level could trigger a surge into a downtrending Gann angle at 25218. This is the last major resistance angle before the 25418 main top.

A sustained move under 25018 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target the major Fibonacci level at 24868. This is followed by 24851, 24794 and an uptrending Gann angle at 24746.

Watch the price action and read the order flow at 25018 all session. Investor reaction to this angle will tell us if the buying or the selling is getting stronger.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.