December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Today, the biggest influences on the price action should be tax reform progress and the testimony of Fed Chair nominee Jerome Powell.
Daily Technical Analysis
The main trend is up according to the daily swing chart. There is no resistance, but the market is up 8 days from its recent bottom, putting it in the window of time for a potentially bearish closing price reversal top.
Daily Technical Forecast
Now that we’ve seen a higher-high than the previous day, the key number the rest of the session becomes yesterday’s close at 23562.
Taking out this level on an intraday basis will signal the presence of sellers. A close below this level will indicate the selling is greater than the buying. It will also indicate a possible shift in momentum to the downside while forming a reversal top. This could lead to the start of a 2 to 3 day correction.
Based on the current price at 23636, the key Gann angle comes in at 23615.
A sustained move over 23615 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the steep uptrending angle at 23717. Overtaking this angle and sustaining the move will put the Dow in an extremely bullish position.
A sustained move under 23615 will signal the presence of sellers. Turning lower for the session will indicate the selling is getting stronger. This may trigger the downside momentum needed to challenge the short-term uptrending angle at 23461.
Watch for the reaction at 23615 then at 23562. Trader reaction to these two prices will tell us if the buyers or sellers are in control.