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E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 29, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 25, 2015, 07:00 UTC

December E-mini Dow Jones Industrial Average futures closed on its high on Tuesday. On a normal trading day, this strong close would create enough upside

Daily December E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures closed on its high on Tuesday. On a normal trading day, this strong close would create enough upside momentum to continue the rally today, but because of the Fed announcement at 2:00 pm EDT, traders may decide to take to the sidelines ahead of the report.

Theoretically, a dovish statement should be bullish for stocks, but no one is certain how much of this has already been baked into the market. Because of the strong nine session rally, this could turn out to be a “buy the rumor, sell the fact” situation. Technically, the market is in the window of time for a closing price reversal top so don’t be surprised if the market rallies early then closes lower at the end of the day.

Daily December E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Bullish traders will likely go after a steep angle moving up from the 15769 bottom at 128 points per day. This angle is at 17049. Crossing to the bullish side of this angle will put the Dow in a position to challenge the first downtrending angle at 17055. Taking out this angle should lead to a test of another angle at 17167. This is the last potential resistance before the contract high at 17279.

A failure to overcome 17049 could encourage investors to lighten up on their positions. This could drive the market back to a downtrending angle at 16831. The Dow could weaken under this level with 16702 the first target. A failure here could trigger a steep break to 16524.

The tone of the market today will be determined by trader reaction to 17049. Since the market is in the window of time for a top and it has been trending into the Fed announcement, don’t be surprised by a closing price reversal top by the end of the day. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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