E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 12, 2017 Forecast

December E-mini Dow Jones Industrial Average futures posted a new high close on Wednesday. Although upside momentum has slowed this week, it hasn’t stopped buyers from producing fresh higher-highs and higher lows. This is the textbook definition of an uptrend.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 22819 will signal a resumption of the uptrend.

Taking out 22819 then closing lower will form a potentially bearish closing price reversal top. This won’t mean the trend is turning down, but it will indicate the selling is greater than the buying at current price levels. This could lead to a 2 to 3 day correction.

Daily Forecast

Based on Wednesday’s close at 22816, the direction of the Dow is likely to be determined by trader reaction to 22819. We’re either going to take out this high with conviction, or a breakout rally will fail and the sellers will start taking control.

A failure to take out the high and a break below 22758 will be another sign of weakness.

On the upside, the nearest target is way up at 23006. Given the current volatility, the Dow is not likely to reach this price.

On the downside, the nearest support is a pair of uptrending angles at 22590 and 22547. We could see a technical bounce on the first test of these angles, but if it fails we could see the start of a steep break.