E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 13, 2016 Forecast

March E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. The Dow remains the strongest of the major U.S. indexes, having posted its 15^th record close since the Trump rally began. This market is showing no sign of letting up despite concerns ahead of Wednesday’s Fed interest rate and monetary policy announcements. Today’s price action will be all about momentum since there aren’t any major economic reports.

Technical Analysis

The main trend is up according to the daily swing chart. The market isn’t close to any main bottoms so there is no danger of a change in trend. We are in the window of time, however, so we could see a closing price reversal top form. This won’t be indicative of a change in trend either, but rather profit-taking and position squaring.

The short-term range is 19001 to 19809. If there is a correction then its 50% level or pivot at 19405 will become the primary downside target.

Forecast

Based on the last price at 19801, the direction of the Dow is likely to be determined by trader reaction to the steep uptrending angle at 19769.

A sustained move over 19769 will put the Dow in a bullish position with 19809 an easy upside target.

A sustained move under 19769 will signal the presence of sellers. The daily chart is open to the downside with the next two major targets coming in at 19405 and 19385.

Watch the price action and read the order flow at 19769 today. Trader reaction to this angle will tell us if the buying is getting stronger or if the sellers are gaining control.