E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 7, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are grinding higher shortly before the cash market opening. Volume is light ahead of Thursday’s European Central Bank meeting. Investors may be afraid to commit in a major way ahead of the ECB decision to either add more stimulus, taper the current program or announce the ending of it.

Traders should also watch the price action in the oil market because this could influence the direction of the market today. The futures contract is also going through the rollover from the December contract to the March contract. This may explain the drop off in volume and volatility.

Technical Analysis

The main trend is up according to the daily swing chart. The market is not in a position to change the trend to down, but it is in the window of time to post a potentially bearish closing price reversal top.

The short-term range is 19083 to 19276. Its 50% level or pivot is 19180. This price is controlling the short-term direction of the market.

The intermediate range is 18756 to 19276. Its retracement zone at 19016 to 18955 is the next downside target.

Forecast

The direction of the Dow futures contract today will be determined by trader reaction to the short-term pivot at 19180.