E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 21, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open the regular session higher. The market is being underpinned by a recovery in Europe as tensions between Italy and the European Union eased. Other catalysts include a rebound in the technology sector, a weaker U.S. Dollar and firmer crude oil prices.

At 1300 GMT, December E-mini Dow Jones Industrial Average futures are trading 24618, up 181 or +0.74%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. Today is the ninth day down from the last swing top so the session begins with the Dow inside the window of time for a potentially bullish closing price reversal bottom.

A trade through 24355 will signal a resumption of the downtrend. This could trigger a break into a pair of main bottoms at 24086 and 24000.

The minor trend is also down. A trade through 25505 will change the minor trend to up.

Daily Swing Chart Technical Forecast

Based on the early price action, it looks as if the direction of the December E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to yesterday’s low at 24355.

Bullish Scenario

A sustained move over 24355 will indicate the presence of buyers. If this move can generate enough upside momentum then look for a potential rally into a series of retracement levels. The first resistance cluster is 24824 to 24920. This is followed by 25177 to 25233.

Bearish Scenario

A sustained move under 24355 will signal the presence of sellers. If this move can create enough downside momentum then look for the selling to continue into 24086 to 24000.

Closing Price Reversal Bottom

Taking out 24355 then closing higher for the day will produce a potentially bullish closing price reversal bottom. If confirmed, this could trigger the start of a 2 to 3 day counter-trend rally.