E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 24, 2015 Forecast

December E-mini Dow Jones Industrial Average futures finished lower on Monday and inside the previous day’s range. This indicates trader indecision and impending volatility. The pre-market break below a steep uptrending angle that had been guiding the market higher since the October 16 bottom also indicates that momentum may be getting ready to shift to the downside.

The main trend is up according to the daily swing chart. The main range is 17052 to 17884. If sellers start to take control then its retracement zone at 17468 to 17370 becomes the primary downside target.

Based on the close at 17762, the market is being controlled by two angles, a downtrending angle at 17794 and a downtrending angle at 17682.

Look for a bullish tone to develop on a sustained move over 17794. The next target is the steep uptrending angle at 17820. A sustained move over this angle will put the market in a strong position. This could set up a further rally into another downtrending angle at 17850. This is the last potential resistance angle before last week’s high at 17884 and the main top at 17906.

The inability to overcome 17794 will indicate the presence of sellers. Taking out the next angle at 17682 will signal the selling is getting stronger. The daily chart also opens up to the downside under 17682.

If there is an acceleration to the downside under 17682 then the first target is the 50% level at 17468. This is followed by a downtrending angle at 17458 and an uptrending angle at 17436.

Watch the price action and read the order flow at 17794. Trader reaction to this angle will tell us whether the bulls or the bears are in control. The angle at 17682 is also important because this is the trigger point for a steep downside move.

Volume may be below average because of the U.S. bank holiday on Thursday so be careful selling weakness and buying strength.