E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 19, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading sharply lower. There’s not a lot to read into at this point in time. There was no follow-through to the upside during the premarket session and sellers may have taken advantage of the thin trading conditions to drive prices sharply lower.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The sharp sell-off is dramatic, but all it means is that a new minor top has formed at 23124.

The main range is 22174 to 23124. If the selling pressure continues, we may see an eventual break into its retracement zone at 22649 to 22537.

Daily Forecast

The first two downside targets are a pair of uptrending angles at 22750 and 22707. Since the main trend is up, we could see a technical bounce to the upside.

If the angles fail as support then look for the selling to extend into 22649 to 22537. Once again, buyers are likely to step in on a test of this zone.

A trade through 23124 will signal a resumption of the uptrend.

Last week’s close is 22830. Watch the price action and read the order flow on a test of this level. A break below it will mean the selling is strong. A close below it on Friday will form a potentially bearish closing price reversal top.