E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 26, 2017 Forecast

A sharp drop in Apple stock is helping to push the March E-mini Dow Jones Industrial Average futures contract lower on Tuesday. Light volume and the absence of a few major players could lead to an extension of the break. The daily chart indicates there is plenty of room to the downside.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum appears to be shifting to the downside. A trade through 24896 will signal a resumption of the uptrend.

The main range is 24086 to 24896. If the selling persists over the near-term, we could see a move into its retracement zone at 24491 to 24395. An uptrending Gann angle at 24470 passes through this zone, making it a valid downside target also.

Daily Technical Forecast

Based on the current chart pattern, the direction of the Dow today is likely to be determined by trader reaction to last week’s low at 24693.

A sustained move under 24693 will indicate the selling is getting stronger. The daily chart indicates there is plenty of room to the downside with the initial targets 24491 and 24470.

A sustained move over 24693 will signal that buyers are coming in to defend the trend. The first upside target is a steep uptrending Gann angle at 24854. Overcoming this angle will indicate the buying is getting stronger with the next target 24896.