E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 14, 2014 Forecast

December E-mini Dow Jones Industrial Average futures accelerated to the downside after taking out a major Fibonacci level at 16381 and a long-term uptrending angle from the 15825 bottom at 16333 today. These angles are resistance today.

The daily chart indicates there is plenty of room to the downside. Breaking the August 8 bottom at 16143 could trigger an acceleration to the downside with another long-term uptrending angle at 16079 the next likely target. This is the last potential support before the April 11 main bottom at 15825.

Overcoming the angle at 16333 will be the first sign of strength, but don’t look for an acceleration to the upside until the Fibonacci level at 16381 is taken out with conviction. It is recommended that short sellers have an exit strategy in place because overtaking 16381 could trigger a sharp rally back to 16552.

Look for a weak tone early in the session. Sentiment may change to the upside if 16381 is taken out with better-than-average volume.