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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 27, 2016 Forecast

By:
James Hyerczyk
Updated: Oct 27, 2016, 13:51 UTC

December E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. The market is being driven by better

e-mini-dow-jones-industrial-average

December E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. The market is being driven by better earnings and strong earnings expectations with several major companies reporting after the close. Traders don’t seem to be too concerned about Friday’s advance GDP, however, we could see profit-taking late in the session related to position-squaring ahead of this news.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum appears to be shifting to the upside. A trade through 18197 will turn the minor trend to up and could trigger an acceleration to the upside.

The main range is 18468 to 17822. Its 50% level or pivot is 18145. This price is controlling the longer-term direction of the market. This price should be watched closely because momentum may shift dramatically to the upside if buying volume starts to pick up on a move over this level.

The minor range is 17868 to 18197. Its 50% level or pivot comes in at 18033. This price is key support today.

daily-december-e-mini-dow-jones-industrial-average
Daily December E-mini Dow Jones Industrial Average

Forecast

Based on the current price at 18155 and the early price action, the direction of the Dow today is likely to be determined by trader reaction to the main pivot at 18145.

A sustained move over 18145 will signal the presence of buyers. The initial rally will be labored because of potential resistance angles at 18188 and 18216. We could see a technical bounce on the first test of this area.

The angle at 18216 is the trigger point for an acceleration to the upside with the next major target coming in at 18320. This is followed by a long-term downtrending angle at 18328. This is the last potential resistance angle before the 18468 main top.

A sustained move under 18145 will signal the presence of sellers. The first downside target is a downtrending angle at 18112. This is followed by the support cluster at 18033.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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