E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 15, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening. Investors are selling in reaction to weakness in Asia and Europe. Lingering concerns over the tax overhaul plan are also pressuring the market today. Traders are also watching the flattening yield curve which may be signaling an impending recession.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. Yesterday’s trade through 23260 confirmed last week’s closing price reversal top. This could signal the start of a 2 to 3 week sell-off.

Earlier today, the Dow tested an intermediate retracement zone at 23254 to 23182. This zone is controlling the near-term direction of the market.

The new short-term range is 23557 to 23226. If there is a rally then its 50% level or pivot at 23392 will become the first upside target.

The main retracement zone and primary downside target is 22866 to 22702.

Daily Technical Forecast

Traders should watch the price action and read the order flow at 23254 today.

Holding above 23254 will signal the return of buyers. This could trigger an intraday rally into a series of potential resistance angles at 23316, 23358 and 23365. All of these angles are in front of the pivot at 23392.

A sustained move under 23254 will indicate the presence of sellers. This could lead to a retest of 23226 then the Fibonacci level at 23182.

The chart pattern indicates the market opens up to the downside under 23182. If this level is taken out with rising volume then we could see an acceleration to the downside with the first target the main 50% level at 22866.