E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 24, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. The Dow received a boost early this morning after FOMC Member James Bullard make a dovish remark about interest rates remaining low for several years.

FOMC Member William Dudley is also scheduled to speak today. He is a noted hawk. At 1345 GMT, traders will get a chance to react to the latest Flash Manufacturing PMI data. It is expected to come in at 51.6. A lower number will raise some issues, but everything should be ok as long as it comes in above 50.0.

Traders should also pay attention to crude oil prices. The market is under early pressure due to bearish comments from Iraq over the week-end. If the selling pressure accelerates then it could put a lid on the Dow’s rally.

Technical Analysis

The main trend is down according to the daily swing chart. It will turn up on a trade through 18320.

The minor trend will turn up on a trade through 18178.

The main range is 18468 to 17822. Its 50% level or pivot is 18145. The market is trading above this level, giving it a strong upside bias. This level is controlling the direction of the market today.

Forecast

Based on the current price at 18165 and the early price action, the direction of the market today is likely to be determined by trader reaction to the pivot at 18145.

A sustained move over 18145 will indicate the presence of buyers. The first target is last week’s high at 18178. This price is a trigger point for an acceleration into a pair of downtrending angles at 18212 and 18240.

The angle at 18240 is the trigger point for an acceleration into the main top at 18320.

A failure to hold 18145 will indicate the presence of sellers. This could trigger a break into an uptrending angle at 18092. This angle is guiding the market higher. If it fails as support then look for a possible acceleration into the short-term pivot at 18023.

Watch the price action and read the order flow at 18145 all session. Trader reaction to this level will set the tone for the day.