E-mini Dow Jones Industrial Average (YM) Futures Analysis – Gains Strength Over 24516

Blue chip stocks closed higher on Thursday as investors took advantage of thin pre-holiday trading conditions to gobble up relatively inexpensive shares driven lower earlier in the week. Despite a volatile two-sided traded on Tuesday and Wednesday, stocks held in a range before closing better for the holiday-shortened week.

June E-mini Dow Jones Industrial Average futures settled at 24147, up 277 or 1.16%.

The main trend is down according to the daily swing chart. A trade through 23496 will signal a resumption of the downtrend.

The minor trend is also down. It will change up on a trade through 24998.

The direction of the Dow is being controlled by a number of retracement zone. Buyers will have to overcome these levels before they’ll be in a position to challenge the main top at 25535. A trade through this level will change the main trend to up.

The intermediate range is 23122 to 25832. Its retracement zone at 24157 to 24477 is the first resistance area.

The short-term range is 25535 to 23496. Its retracement zone at 24516 to 24756 is the next target.

The main range is 26723 to 23122. Its retracement zone at 24923 to 25347 is the primary upside target. This zone is controlling the longer-term direction of the market.

The combination of the intermediate 50% level at 24477 and the short-term 50% level at 24516 creates a major resistance cluster. This is also a possible trigger point for an acceleration to the upside.

Based on last week’s price action, the direction of the Dow is likely to be determined by trader reaction to the intermediate Fibonacci level at 24157.

A sustained move under 24157 will indicate the presence of sellers. If this move creates enough downside pressure, we could see a move into 23496. This is a possible trigger point for an acceleration into the next main bottom at 23122.

A sustained move over 24157 will signal the presence of buyers. The resistance is layered over this level with the first target the resistance cluster at 24477 to 24516.

The rally could pick up steam over 24516 with room to run to 24756, followed by 24923. Look for the buying to get stronger once the Dow crosses to the bullish side of this 50% lever or pivot.