E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 25, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening. Buyers are attempting to claw back some or all of yesterday’s steep decline. Buyers are also trying to recapture the major retracement zone that is controlling the near-term direction of the market.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24511 will signal a resumption of the downtrend. A trade through 25845 will change the main trend to up.

The minor trend is also down. A trade through 25338 will change the minor trend to up. This will also shift momentum to the upside.

The main retracement zone is 24824 to 25233. This zone is controlling the near-term direction of the Dow. The early rally has put the market inside this zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the main Fibonacci level at 24824.

A sustained move over 24824 will indicate the presence of buyers. The next upside targets are a pair of downtrending Gann angles at 24918 and 25077. Since the trend is down we could see sellers on the first test of this angles.

Overcoming 25077 will indicate the buying is getting stronger. This could lead to a test of the main 50% level at 25233. Crossing to the strong side of the 50% level will shift the bias to the upside, crossing 25338 will change the minor trend to up.

A sustained move under 24824 will signal the presence of sellers. This could trigger a re-test of yesterday’s low at 24511. The daily chart is wide open under this level with the June 28 bottom at 24000 the first major downside target.

The main bottom at 24000 is also a trigger point for an acceleration into 23580 and 23500.