September E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening. Traders are waiting for the Apple event at 1700 GMT. They are supposed to reveal three new products. If the products are well received then the Dow may spike to the upside. We do expect to see increased volatility.
The main trend is up according to the daily swing chart. A trade through 22132 will signal a resumption of the uptrend. There is no resistance above this level. If the market is topping then it is likely to form a closing price reversal top. This may not mean the trend is changing to down, but it will indicate the selling is greater than the buying at current price levels.
A sustained move over 22132 will indicate the buying is getting stronger. The next target is an uptrending angle at 22220. Crossing to the strong side of this angle will put the market in an extremely bullish position.
If buyers can't take out 22132 or sustained a rally above it then look for sellers to come in. If the selling pressure is strong enough, the Dow could break all the way back to the next uptrending Gann angle at 21932.
Basically, the direction of the Dow today will be determined by trader reaction to the top at 22132.
There are three scenarios. The most bullish is a breakout over 22132. The inability to overcome this top will indicate the buying is weakening or the selling is increasing.
Crossing 22132 then closing lower for the session will be a bearish signal.
This article was originally posted on FX Empire
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