E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 13, 2014 Forecast
December E-mini Dow Jones Industrial Average futures closed in a weak position on Friday, suggesting the selling pressure will continue on Monday.
The main trend is down on the daily chart. The main range is 15825 to 17279. The retracement zone formed by this range is 16552 to 16381.
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If 16381 is taken out then look for a drive into the next long-term uptrending angle at 16325. The daily chart opens up under this angle with the August 8 bottom at 16143 the next likely target, followed by the next long-term uptrending angle at 16075.
The first sign of short-covering today will be overtaking the 50% level at 16552. Holding this level could trigger a strong short-covering rally with the nearest upside target a downtrending angle at 16735.
The tone of the market today will be determined by trader reaction to the 16552 to 16381 retracement zone.