E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 25, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are called slightly better on Tuesday based on the pre-market trade. U.S. economic data is limited today to minor reports on housing with the main report on consumer sentiment. However, the main driver of the price action today is likely to be the plethora of corporate earnings reports.

Dow traders should also pay attention to crude oil prices since they have been known to exert pressure on the futures contract especially to the downside.

Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a trade through 18320. A move through 17868 will signal a resumption of the downtrend.

The main range is 18468 to 17822. Its 50% level or pivot is 18145. This price is currently being tested. It is controlling the longer-term direction of the market. Holding above it will give the market a strong upside bias. A sustained move under this level will give the Dow a downside bias.

If a short-term range develops between 17868 and 18197 then its 50% level or pivot becomes the primary downside target today. This price is 18033.

Forecast

Based on the current price at 18150, the direction of the market today will be determined by trader reaction to the pivot at 18145.

A sustained move over 18145 could create enough upside momentum to challenge a pair of downtrending angles at 18204 and 18232. The upper level at 18232 is the trigger point for a potential acceleration into the October 10 top at 18320.

A sustained move under 18145 will indicate the presence of sellers. This is followed closely by angles at 18144 and 18124.

The daily chart opens up to the downside under 18124 with the nearest target the minor 50% level at 18033.

Watch the price action and read the order flow at 18145 today. Trader reaction to this level will tell us if the buying is getting stronger, or if sellers are regaining control.