E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 7, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading slightly better shortly before the cash market opening. Earlier in the session, the Dow hit a new all-time, but this more attracted sellers at 23557.

Daily Technical Analysis

The main trend is up according to the daily swing chart. There is no resistance, however, the early price action suggests the selling may be greater than the buying at current price levels.

The key level to watch is yesterday’s close at 23487. Holding this level will indicate that buyers are still coming in to support the rally. A break below this level will put the Dow in a position to form a potentially bearish closing price reversal top.

A trade through 23407 will change the minor trend to down. This is followed by minor bottoms at 23289 and 23203.

The short-term range is 22951 to 23557. If there is a sell-off then its retracement zone at 23254 to 23182 will become the primary downside target.

Daily Technical Forecast

Based on the earlier price action, traders should watch the price action and read the order flow at 23557 and 23487.

If the buying is still strong then look for the rally to resume on a sustained move over 23557.

If the selling is strong then look for a sustained move under 23487. A close under this level will form a closing price reversal top. If this occurs then prepare for the start of a possible 2 to 3 day correction with 23254 to 23182 the primary downside target.

Additional downside targets and possible support are a pair of uptrending Gann angles at 23168 and 23124.

Basically, look for an extension of the rally over 23557, or selling pressure under 23487.