E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 22, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower at the mid-session. The market started higher, reaching a new contract high, but the buying dried up and the Dow turned lower for the session.

The price action is the result of the thin trading conditions due to the holiday shortened week and position-squaring ahead of the release of the minutes of the Federal Reserve monetary policy meeting earlier in the month at 1900 GMT.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the price action indicates the selling may be greater than the buying at current price levels. This puts the market in a position to post a potentially bearish closing price reversal top.

An intraday trade through 23599 will signal the return of buyers. A break under yesterday’s close at 23543 will be a sign of increasing selling pressure. A close under this level will form the reversal top. If confirmed, this could lead to the start of a 2 to 3 day retracement of the last rally.

Daily Technical Forecast

Based on the earlier trade, the key area to watch is a support cluster at 23525 to 23517.

Holding 23525 will indicate the presence of buyers. If this creates enough upside momentum then we could see a retest of 23599.

A break under 23517 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside under this level with 23402 the minimum downside target. However, given the light volume, I doubt we’re going to get there today.