E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 26, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. The market is holding inside the pre-market range. This suggests investor indecision and impending volatility. Traders are trying to figure out how to play the market since Wednesday’s low at 24511 remains intact despite follow-through selling in the S&P 500 Index and the NASDAQ Composite Index.

At 1335 GMT, the December E-mini Dow Jones Industrial Average is trading 24673, down 204 or -0.82%.

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. If this creates enough downside momentum then look for the selling to continue into the June 28 bottom at 24000. The main trend changes to up on a trade through 25845.

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 market. Trading on the weak side of this zone will give the market a downside bias.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average on Friday is likely to be determined by trader reaction to the downtrending Gann angle at 24790.

A sustained move under 24790 will indicate the presence of sellers. If this creates enough downside momentum then look for a break into 24511. Taking out this level will indicate the selling is getting stronger. This could trigger a further break into 24000.

Overtaking and sustaining a rally over 24790 will signal the presence of buyers. This could trigger a rally into the Fib level at 24824. This is a potential trigger point for an acceleration into the next downtrending Gann angle at 24949.

Since the main trend is down, sellers are likely to come in on the first test of 24949. However, this is also the trigger point for an acceleration to the upside. The daily chart shows there is plenty of room to the upside with targets coming in at 25233, 25338 and 25397.

We’re also down 7 sessions from the last main top. Therefore, taking out 24511 then closing higher will produce a potentially bullish closing price reversal bottom.