E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 1, 2015 Forecast

December E-mini Dow Jones Industrial Average futures are trading better shortly before the cash market opening. The market is rebounding after yesterday’s weak close, but still trading under three previous resistance levels. The current price at 17784 has the Dow in a position to challenge these levels early in the session.

Based on the current price at 17784 and the earlier price action, the direction of the market today is likely to be determined by trader reaction to the short-term pivot at 17749.

Earlier in the session, trader establish support at 17749 and a downtrending angle at 17764. This helped trigger a rally to 17822 which put the down slightly below another downtrending angle at 17836. This is the last potential resistance angle before minor highs at 17875 and 17884 and the main top at 17906.

Taking out 17906 with conviction will signal a resumption of the uptrend. This could put the market on a path to eventually test the May 19 main top at 18149. Taking out 17906 then closing back below it will be a sign that the selling is greater than the buying at current price levels.

A sustained move under 17749 will indicate the presence of sellers. This could lead to an acceleration to the downside with the first target a steep uptrending angle at 17692.

The angle at 17692 is also a trigger point for an acceleration to the downside with the first target a downtrending angle at 17620. This is also a trigger point for a steep sell-off with the next target a 50% level at 17468.

Watch the price action and read the order flow at 17749 and 17836 early in the session. Look for a bullish tone to develop on a sustained move over 17836 and a bearish tone to develop on a sustained move under 17749.