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The September E-mini Dow Jones Industrial Average futures contract is called flat this morning ahead of a few key economic reports. This morning, investors will get the opportunity to react to the latest figures on retail sales, producer prices, consumer sentiment and business inventories.
After the initial reaction to these reports, the market could become range bound as investors begin to position themselves for next week’s key Fed decision regarding its plan to begin reducing monthly monetary stimulus. Traders are still keeping an eye on the situation in Syria, but the lack of fresh news has kept interest at a low level.
Daily September E-mini Dow Jones Industrial AverageThe most important number today is the retail sales report. The Fed wants to see growth in consumer spending and will no doubt use the information from this report to help make its decision on how much of its $85 billion in monetary stimulus to cut. Currently, investors are pricing in a $10 to $20 billion reduction in financial aid. . Economists are looking for a 0.5 percent increase in August retail sales, minus auto sales up only 0.3 percent.
Technically, the Dow posted a potentially bearish closing price reversal top. A trade through 15271 will confirm the chart pattern and could trigger the start of an eventual correction to 15044 – 14972. A trade through 15347 will negate the chart pattern. Besides the top at 15347, downtrending Gann angle resistance is at 15368. The market could accelerate to the upside if this angle is taken out with conviction.
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