E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 26, 2017 Forecast

December E-mini S&P 500 Index futures are called higher based on the pre-market trade. There was no follow-through to the downside following yesterday’s steep sell-off. Traders should be on alert for higher-than-average volatility based on the price action the past two days.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 23436 will signal a resumption of the uptrend. If a new high is made then traders should watch the follow-through move. If the follow-through is weak and the market turns lower for the session, prepare for a closing price reversal top.

The short-term range is 22951 to 23436. Its retracement zone at 23194 to 23136 is the primary downside target and support.

Daily Forecast

The simple approach is to look for an upside bias as long as the index hold above yesterday’s close. This could create the upside momentum needed to challenge this week’s high at 23436.

A sustained move under yesterday’s close will indicate the presence of sellers. This could create enough downside momentum to challenge the short-term retracement zone at 23194 to 23136.

The daily chart will open up to the downside if 23136 fails as support. This could trigger a steep break into the minor bottom at 22951, followed by a pair of long-term uptrending angles at 2583.25 and 2577.25.

The best approach today is to treat yesterday’s close like a pivot.