E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 13, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are trading nearly flat shortly before the cash market opening. Volume is expected to be light ahead of today’s Fed interest rate decision and monetary policy statement at 1900 GMT.

The central bank is expected to raise its benchmark rate 25 basis points to 1.50%. The market moving event will be its forecast for rate hikes in 2018. Stocks could weaken if the Fed decides to be aggressive. Equities could surge if the Fed lowers its expectations.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24575 will signal a resumption of the uptrend. Today’s session also begins with the Dow in the window of time for a potentially bearish closing price reversal top.

The short-term range is 24086 to 24575. If there is a pullback then its retracement zone at 24331 to 24273 will become the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Daily Technical Forecast

Based on the early price action, the Dow is going to take out 24575 and surge to the upside, or a closing price reversal top will form. There may also be no follow-through to the upside.

The nearest support is a long-term uptrending Gann angle at 24416. If this angle fails then look for a further break into the short-term uptrending Gann angle at 24342, followed by the short-term 50% level at 24331.

The daily chart opens up further under 24331 with potential targets at 24273 and 24214.