December E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. The Dow rallied after the U.S. Senate approved a budget that will probably make passing its tax reform bill easier.
Daily Technical Analysis
The main trend is up according to the daily swing chart. It was reaffirmed earlier today when buyers drove the market through 23124.
The new minor bottom is 22951. A trade through this level will indicate the selling is greater than the buying at current price levels.
The short-term range is 22951 to 23242. Its retracement zone at 23097 to 23062 is new support.
The current main range is 22174 to 23242. If there is a sell-off then its retracement zone at 22708 to 22582 will become the primary downside target.
Traders should also watch the price action and read the order flow at 23114. A close below this level will produce a potentially bearish daily closing price reversal top.
A close below 22830 will produce a potentially bearish weekly closing price reversal top.
Daily Forecast
Based on the current price at 23191 and the earlier price action, the direction of the Dow today is being controlled by the short-term 50% level at 23097.
Look for a bullish tone on a sustained move over 23097. If today’s intraday high at 23242 is taken out then the next upside target becomes a steep uptrending angle at 23390. Crossing to the strong side of this angle will put the index in an extremely bullish position.
A failure to hold 23097 will be a sign of weakness. This could drive the Dow into 23062. This price is the trigger point for a potential break into yesterday’s low at 22951.
A failure to hold 22951 could trigger an acceleration into a pair of uptrending angles at 22782 and 22738.