E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 23, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The early strength is being fueled by a weaker Japanese Yen, increased demand for risky assets due to optimism over U.S. tax reform and expectations of better-than-expected earnings reports.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, due to the prolonged move up in terms of price and time, the Dow is in the window of time for a potentially bearish closing price reversal top.

The new short-term range is 22951 to 23311. If this range holds and the market begins to sell-off then its 50% level or pivot at 23131 will become the primary downside target.

This pivot is essentially controlling the short-term direction of the market.

Daily Forecast

If the rally continues then we could see a pick-up in momentum. The nearest upside target is a steep uptrending angle at 23454. This is a target. It is not resistance. Crossing to the strong side of this angle will put the Dow in an extremely strong position.

The first sign of weakness will be a break back under Friday’s close at 23114. If downside momentum picks up under this level, we could see an acceleration into the short-term pivot at 23131.

Crossing to the weak side of the pivot could trigger an acceleration to the downside with the minor bottom at 22951 the next likely downside target.