E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 30, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are now called higher shortly before the regular session opening. Earlier in the session, the market was called lower due to concerns over the financial health of Deutsche Bank, which is currently trading at an all-time low.

Reports that hedge funds were pulling funds out of the bank triggered a second wave of selling pressure overnight after the stocks of the bank started to fall earlier in the week. Investors seem to be reacting to positive comments from the bank’s CEO that apparently calmed the nerves of traders. Additionally, the market may have been supported by rumors about a possible bailout of the bank.

TECHNICAL ANALYSIS

The main trend is down according to the daily swing chart. However, momentum may have shifted to the upside after today’s successful defense of this week’s low at 17959.

A trade through 18279 will turn the minor trend to up. This could trigger a further rally into the next minor top at 18366. A trade through 18468 will turn the main trend to up.

A trade through 17959 will not only negate the closing price reversal bottom, but it will also take out a minor bottom, perhaps creating enough downside momentum to challenge the main bottom at 17822.

The main range is 18468 to 17822. Its 50% level or pivot is 18145. This price is important to the structure of the market.

FORECAST

BASED ON THE CURRENT PRICE AND THE EARLY PRICE ACTION, THE DIRECTION OF THE E-MINI DOW JONES INDUSTRIAL AVERAGE FUTURES CONTRACT WILL BE DETERMINED BY TRADER REACTION TO THE UPTRENDING ANGLE AT 18046.

A SUSTAINED MOVE OVER 18046 WILL SIGNAL THE PRESENCE OF BUYERS. THIS COULD DRIVE THE MAREKT INTO THE 50% LEVEL AT 18145. CROSSING TO THE STRONG SIDE OF THIS 50% LEVEL WILL INDICATE THE BUYING IS GETTING STRONGER. THIS COULD DRIVE THE MARKET INTO THE NEXT DOWNTRENDING ANGLE AT 18212.

THE ANGLE AT 18212 IS THE TRIGGER POINT FOR AN ACCELERATION TO THE UPSIDE WITH THE NEXT TARGETS 18279 AND 18340.

A SUSTAINED MOVE UNDER 18046 WILL INDICATE THE PRESENCE OF SELLERS. THIS COULD TRIGGER ANOTHER BREAK INTO 17959 THEN 17934. THE LAST POTENTIAL SUPPORT ANGLE BEFORE THE 17822 MAIN BOTTOM COMES IN AT 17878.

LOOK FOR AN UPSIDE BIAS TODAY AS LONG AS THE MARKET STAYS ABOVE 18046. A DOWNSIDE BIAS WILL BEGIN IF 18046 FAILS AS SUPPORT.