E-mini Dow Jones Industrial Average (YM) Futures Analysis – Inside Major RT Zone at 25233 to 24824

December E-mini Dow Jones Industrial Average futures are inching higher early Thursday after another steep sell-off during yesterday’s session. Stocks are being underpinned by a slight improvement in market risk sentiment after British Prime Minister Theresa May said she obtained enough support for her proposed Brexit deal to move forward. Positive comments from U.S. Federal Reserve Chairman Jerome Powell late Wednesday are also supporting prices.

At 0719 GMT, December Dow Jones Industrial Average futures are trading at 25122, up 78 or +0.32%.

The market is only stabilizing after yesterday’s rout was fueled by another sell-off in shares of Apple. Bank stocks also took a big hit after a U.S. Congresswoman suggested the days of easing financial system regulations may be over. Furthermore, there are doubts over whether the draft agreement will get parliamentary approval.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 24086 will change the main trend to down. The uptrend will resume on a trade through 26268.

The minor trend is down. The minor trend turned down when sellers took out the 25035 minor bottom. This also shifted momentum to the downside.

The market is currently trading inside the major retracement zone at 25233 to 24824. Inside this zone is the minor retracement zone at 24920 to 25177. This area is controlling the longer-term direction of the Dow.

The main range is 26966 to 24086. Its retracement zone at 25526 to 25866 is the next upside target and resistance zone.

Daily Swing Chart Technical Forecast

Based on yesterday’s move and today’s price action, the direction of the December E-mini Dow Jones Industrial Average futures contract on Thursday is likely to be determined by trader reaction to the Fibonacci levels at 24920 and 24824.

Bullish Scenario

A sustained move over 24920 will indicate the presence of buyers. If this generates enough upside momentum then look for a rally into a pair of 50% levels at 25177 and 25233.

Watch for a technical bounce on the first test of this area, however, taking out 25233 could trigger an acceleration into the next 50% level at 25526. This is another trigger point for an acceleration into the Fibonacci level at 25866.

Bearish Scenario

A sustained move under 24824 will signal the presence of sellers. This is a potential trigger point for a steep break with the next targets coming in at 24086 and 24000.