E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 15, 2015 Forecast

March E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. During the pre-market session, the index surged to the upside after taking out a downtrending angle and yesterday’s high. This confirmed Monday’s closing price reversal bottom.

The main trend is up according to the daily swing chart. Momentum had been down since December 2, but it quickly turned back up with the formation of the potentially bullish closing price reversal bottom.

Based on the early price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at 17249 and the short-term 50% level at 17439.

During the pre-market session, the Dow surged after taking out the angle at 17249. This puts it in a position to challenge the short-term retracement zone at 17439 to 17530. This is the primary upside target.

The best upside target is a price cluster formed by the Fib level at 17530 and the downtrending angle at 17537. Overtaking this area could trigger an acceleration to the upside with 17681 the next upside target.

If the trend is getting ready to turn lower then sellers are likely to come in on a test of the retracement zone so traders should look for a technical bounce on the initial test of this zone. Buyers are going to try to take out this zone in an effort to trigger a resumption of the uptrend.

A sustained move under 17249 will signal the presence of sellers. This could trigger a break into the reversal bottom at 17053.

Taking out 17053 could lead to an acceleration into the next main bottom at 16991. A trade through this level will turn the main trend to down. The primary downside target is the major retracement zone at 16804 to 16562. An uptrending angle passes through this zone at 16644, making it a valid downside target also.