September E-mini Dow Jones Industrial Average futures are trading steady to better shortly after the cash market opening. The market is being supported by positive earnings reports. Volume is expected to be light ahead of central bank announcements from the Bank of Japan early Tuesday and the start of the Fed’s two-day meeting.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum is trending lower due to Friday’s closing price reversal top and subsequent confirmation earlier today.
A trade through 25572 will negate the reversal top and signal a resumption of the uptrend. A trade below today’s intraday low at 25344 will signal the return of sellers.
The short-term range is 25572 to 25344. Its 50% level or pivot is currently being tested. Sellers are going to try to form a secondary lower top on a test of this level. Buyers are going to try to drive the market through this level.
The main range is 24912 to 25572. If the selling pressure continues then its retracement zone at 25242 to 25164 will become 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 will be determined by trader reaction to the pivot at 25458.
A sustained move under 25458 will indicate the presence of sellers. If this generates enough downside momentum then look for a drive into a pair of uptrending Gann angles at 25321 and 25296. We could see a technical bounce on the first test of these angles. However, look out to the downside if they fail. The daily chart indicates there is plenty of room to the downside with 25242 the next target.
Overtaking and sustaining a rally over 25458 will signal the presence of buyers. This could lead to a labored rally with target angles coming in at 25508, 25540 and 25556. The latter is the last potential resistance angle before the 25572 main top.