E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 17, 2014 Forecast

December E-mini Dow Jones Industrial Average futures posted an inside day, higher close on Thursday, suggesting impending volatility, but giving the Dow a slight bias to the upside on the opening today.

For a second day, the Dow found support on a long-term uptrending angle from the April bottom. This angle comes in at 15801 today. The Dow also closed on the bullish side of a major 61.8% level at 15923. This is also helping to give the market an upside bias.

The first two support levels today are 15923 and 15769. If 15769 fails then there could be an acceleration to the downside because the nearest support doesn’t come in until 15445. This is followed by the low of the year at 15085.

The first resistance level that has to be overcome is a steep downtrending angle at 15999. Overtaking this level should lead to a rally into the major 50% level at 16182.

The short-term range is 16949 to 15769. Its retracement zone at 16359 to 16498 is the best upside target over the short-run.

Look for an early bias to the upside if buyers can hold the market above 15999. The next level to watch is 16182. The market could begin to accelerate to the upside if 16182 is taken out with conviction.