E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 19, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. Investors are coming in to support the market ahead of today’s vote on a bill that would slash taxes on corporations. The U.S. House of Representative’s vote is expected to take place at around 1830 GMT.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Shortly before the cash market opening, the Dow is trading inside yesterday’s range. This suggests investor indecision and impending volatility.

A trade through 24896 will signal a resumption of the uptrend. There is no resistance so the Dow could surge. After posting a new high, a trade through yesterday’s close at 24823 will signal the presence of sellers. This could lead to the formation of a potentially bearish closing price reversal top and the start of a 2 to 3 day retracement.

The main range is 24086 to 24896. If we do see the start of a sell-off then its retracement zone at 24491 to 24395 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the Dow today will be determined by two levels, yesterday’s high at 24896 and yesterday’s close at 24823.

A sustained move over 24896 will signal the presence of buyers.

Taking out 24896 then sustaining a break under 24823 will indicate the selling is greater than the buying at current price levels.

The inability to post a new high will also signal the presence of sellers. If this move gains traction then look for an eventual move into the first, long-term uptrending Gann angle at 24673. If this price fails then look for the selling to extend into the short-term uptrending Gann angle at 24598.