E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 6, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Volume is light as investors express some caution due to the U.S. mid-term elections. No one is sure of the outcome of elections, but the crowd seems to think the Democrats will gain control of the House of Representatives and the Republicans will retain control of the Senate.

At 1451 GMT, the market is trading 25486, up 45 or +0.18%.

Daily Swing Chart Technical Analysis

The main trend is down according to the main trend indicator chart. However, momentum is trending higher. A move through 25684 will indicate the buying is getting stronger. A trade through 25845 will change the main trend to up. The daily chart indicates there is plenty of room to the upside with the next target coming in at 26966.

The minor trend is up. This is helping to generate the upside momentum.

Daily Swing Chart Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by a series of retracement levels. They indicate there is plenty of open space to the upside, and congestion to the downside.

Based on the early price action, the direction of the futures contract is likely to be determined by trader reaction to the 50% level at 25526.

A sustained move over 25526 will indicate the presence of buyers. Taking out the high at 25684 will indicate the buying is getting stronger with the main top at 25845 and the Fibonacci level at 25866 the next upside targets.

A sustained move under 25526 will signal the presence of sellers. The first downside target is a support cluster at 25233 to 25173. If 21573 fails as support then look for the selling to possibly extend into a series of levels at 24966, 24885, 24824 and 24696.

Essentially, the way of least resistance is up. Any sell-off is likely to be labored. Volume is expected to be light so be careful buying strength and selling weakness.