E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 1, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening, however, volume and volatility are below average. The price action since October 14 suggests investors are content with holding the market in a range.

At this time, investors seem to be content with sitting on the sidelines. Concerns include Wednesday’s Fed monetary policy statement, Friday’s U.S. Non-Farm Payrolls report and next Tuesday’s presidential election.

Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a trade through 18320. A trade through 17868 will signal a resumption of the uptrend.

The nearest minor top is 18197. Minor bottoms include 17975 and 17965.

The short-term range is 17868 to 18197. Its 50% or pivot level is 18033. This zone is currently being treated like support.

The main range is 18468 to 17822. Its 50% level or pivot is 18145. This level has been acting like resistance for several weeks.

Forecast

In the absence of any major news event today, I expect investors to hold the Dow inside the two 50% levels at 18033 and 18145. I don’t think the major players want to step in front of the Fed, the jobs report and the election especially with what happened after the Brexit vote in June.

Besides the two 50% levels at 18033 and 18145, the Dow is also reacting to a pair of angles at 18076 and 18048. However, the major support angles come in at 17972 and 17920. The major resistance angles drop in at 18164 and 18184.

Look for another low-volume, rangebound trading session on Tuesday. The markets aren’t likely to move unless there is a major news event.