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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 18, 2017 Forecast

By:
James Hyerczyk
Updated: Oct 18, 2017, 19:24 UTC

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening. The catalyst behind the rally is stronger-than-expected

E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the opening. The catalyst behind the rally is stronger-than-expected earnings from IBM. This news has helped boost the Dow over 100 points on Wednesday.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart.

There is no resistance at current price levels so the best sign of a short-term top will be a closing price reversal top.

Now that the market has produced a higher-high on the daily chart, the key level to watch all session is yesterday’s close at 22951. A sustained move under this level will indicate the selling is greater than the buying at current price levels.

Daily Forecast

The trend and the momentum are strong so it doesn’t make sense to try to pick a top. Turning lower for the session will indicate a shift in intraday momentum to down. This move may start to bring in the profit-takers and counter-trend short sellers.

The daily chart indicates the Dow is making an unusual chart pattern. It is currently splitting a pair of uptrending Gann angles. I don’t think it will catch up to the steep uptrending angle, but if we do see a break then the primary downside target will be a pair of uptrending angles at 22718 and 22675.

Look for the uptrend to continue, but be prepared for a closing price reversal top.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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