E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 17, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. There was very little follow-through to the upside following Tuesday’s strong rebound rally. Sellers came in today as the market approached a key retracement zone. Trader reaction to this zone will determine the near-term direction of the market.

 

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24893 will signal a resumption of the downtrend. The main trend will change to up on a trade through 26966.

The minor trend is also down. It will turn up on a trade through 26562. This will also shift momentum to the upside.

The short-term range is 26966 to 24893. Its retracement zone at 25930 to 26174 is the primary upside target. This zone is critical to the chart pattern. Since the main trend is down, short-sellers are likely to come in on a test of this zone. They are going to try to form a potentially bearish secondary lower top. Bullish counter-trend buyers are going to try to take out this zone in an effort to make 24893 an important secondary higher bottom.

The major support zone is 25233 to 24824.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 25686.

A sustained move over 25686 will indicate the presence of buyers. This could generate a quick move into a price cluster at 25917 to 25930. We could see sellers on the first test of this area.

Overtaking 25930 will indicate the buying is getting stronger. This could trigger a rally into the Fibonacci level at 26174. This is followed closely by a downtrending Gann angle at 26326.

A sustained move under 25686 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target angle coming in at 25405.

Watch for a technical bounce on the first test of 25405. If it fails then look for a further break into the major 50% level at 25233, followed by an uptrending Gann angle at 25149.