E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 2, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are called lower based on the pre-market trade. Investors may be taking a break after yesterday’s rally failed to take the market to a new all-time high. We could also be looking at position-squaring and profit-taking ahead of Friday’s U.S. Non-Farm Payrolls report.

At 1130 GMT, December E-mini Dow Jones Industrial Average futures are trading 26599, down 78 or -0.29%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26820 will signal a resumption of the uptrend after six sessions of sideways to lower trading. The main trend will change to down on a move through 25991.

The minor trend is also up. A trade through 26347 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 26820 to 26347. The market is currently testing its 50% level or pivot at 26584.

The intermediate range is 25991 to 26820. Its 50% level or pivot is 26406.

The main range is 25784 to 26820. Its retracement zone at 26302 to 26180 is the primary downside target and value zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the short-term pivot at 26584.

A sustained move over 26584 will indicate the presence of buyers. Holding above the uptrending Gann angle at 26631 will indicate the buying is getting stronger. This could drive the Dow into a downtrending Gann angle at 26708. This is followed by another downtrending Gann angle at 26764. This is the last potential resistance angle before the 26820 main top.

A sustained move under 26584 will signal the presence of sellers. The daily chart is wide open under this level so increased selling pressure could drive the Dow into the 50% level at 26406. This is followed by a support cluster at 26311 to 26302.

Basically, look for an upside bias to develop on a sustained move over 26631 and for a downside bias to develop on a sustained move under 26584.