E-mini Dow Jones Industrial Average (YM) Futures Analysis – Bullish Tone, but Still Vulnerable to Closing Price Reversal Top

December E-mini Dow Jones Industrial Average futures are trading higher at the mid-session. The rally is being driven by earnings and low inflation.

Today’s rally produced a record high and the current price has the Dow in a position to post a record close.

The main trend is up according to the daily swing chart. The only chart pattern that can stop this rally at this point is a higher-high, lower-close, or closing price reversal top. This chart pattern will not mean the trend is getting ready to change to down, but it will be an indication that the selling is greater than the buying at current price levels.

Look for a bullish tone into the close and a bearish tone if the Dow falls below 22798 late in the session.

The chart pattern suggests the Dow is vulnerable to the downside once the selling begins with the next target angle coming in at 22622.