E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 8, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open slightly higher as investors digest the European Central Bank’s decision to extend quantitative easing until December 2107. It also said it would reduce purchases to 60 billion Euros per month. We could see volatility early in the session because ECB President Mario Draghi will be holding a press conference.

Technical Analysis

The main trend is up according to the daily swing chart, however, today is not going to be about the trend but rather momentum. The upside momentum will take a considerable hit today if there is a higher-high and lower close.

It won’t change the main trend to down, but taking out 19083 will also indicate a shift in momentum to down. This is followed by 18756, which is also an important low.

Forecast

The direction of the market today is likely to be determined by trader reaction to yesterday’s high at 19558.

Buyers are either going to take out 19558 and sustain the move, or it’s going to take it out then break back below it.

If there is a breakout to the upside and buyer can sustain it then the next potential target is an uptrending angle at 19978.

If the breakout fails then look for selling pressure. This could be strong enough to drive the market back to 19083. However, traders should also pay attention to intraday retracement levels. These may slow down the pace of the selling.

Again, watch the price action and read the order flow at 19558 today. This is the most important price level.