E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 8, 2016 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower ahead of the cash market opening. There was no follow-through to the upside following yesterday strong surge. The market is trading inside yesterday’s range. This indicates investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. The main trend turned up on Monday when the Dow took out 18197. The new swing bottom is 17799. If the upside momentum continues today then the rally could extend into tops at 18320 and 18468.

The main range is 18468 to 17799. Its 50% or pivot is 18134. Holding above this level will give the market an upside bias.

The short-term range is 17799 to 18209. If this range holds today then its retracement zone at 18004 to 17956 will become the primary downside target.

Forecast

Based on the current price at 18173 and the early price action, the direction of the Dow today is likely to be determined by trader reaction to a downtrending angle at 18236 and a downtrending angle at 18124. Holding between these levels will mean the market is rangebound.

A sustained move over 18236 will indicate the presence of buyers. This could generate enough upside momentum to test a downtrending angle at 18296. This is followed by the main top at 18320.

A sustained move under 18124 will signal the presence of sellers. This is followed by steep uptrending angles at 18055 and 17927 and the short-term retracement zone at 18004 to 17956.

Today will be all about momentum. Buyers are either going to return to drive this market higher or the market will drift sideways to lower on low volume.