E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 7, 2018 Forecast

The blue chip U.S. stock average is trading higher on Wednesday, shortly after the opening. Investors are apparently celebrating the end of the mid-term elections which resulted in a split Congress. Investors are expressing relief because the event lifted some of the uncertainty that had created volatile trading conditions in the market for over a little more than a month.

At 1546 GMT, the December E-mini Dow Jones Industrial Average is trading 25786, up 145 or 0.57%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the October 17 main top at 25845. However, the rally stalled at 25858, just shy of the major Fibonacci level at 25866.

The market is in no position to change the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top on a close under 25641.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 25866.

Taking out 25866 with conviction will indicate the buying is getting stronger. This is a potential trigger point for an acceleration to the upside with the next major target coming in at 26966. The daily chart shows there is no major resistance between the current price and the October 3 main top.

The inability to take out and sustain a really over 25866 will signal the return of sellers. Breaking back under yesterday’s close at 25641 will indicate the selling is greater than the buying at current price levels. This could trigger a further break into the main 50% level at 25526.

The 50% level at 25526 is a potential trigger point for a further decline into 25233.