September E-mini Dow Jones Industrial Average futures are expected to open lower based on the early trade. Investors are responding to a weaker U.S. Dollar, another delay in the Republican Senate’s attempt to repeal Obamacare and reform healthcare, and early earnings reports from Bank of America and Dow components Johnson & Johnson and Goldman Sachs. IBM will release its earnings results after the close.

Traders are also keeping an eye on oil prices which are rebounding after early session weakness. This move could help limit losses in the Dow and S&P 500.

Technically, the main trend is up according to the daily swing chart, but the market is trading inside Friday’s range for a second day. This indicates investor indecision and impending volatility.

Taking out 21628 will signal a resumption of the uptrend. If volume rises on the move then look for the rally to extend. If the volume is light on a breakout and the market turns lower for the session then watch for the formation of a potentially bearish closing price reversal top.

A failure to overcome 21628 will signal the presence of sellers. If selling momentum picks up on the move and selling volume rises then we could see an acceleration to the downside with 21427 the next likely downside target.

This article was originally posted on FX Empire

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