E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 30, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening as investors react to a 3.3 percent slide in GM stock after Goldman Sachs downgraded the stock to sell. It also said that it sees a 28 percent downside over the 12 months for the stock.

Profit-taking ahead of another week of earnings, a Fed meeting and a Non-Farm Payrolls report is also weighing on the Dow. End-of-the-month position-squaring may also be responsible for some of the selling pressure.

Shortly before the opening, Ex-Trump campaign chair Paul Manafort was charged with “conspiracy against the United States”. This may have had some influence on the early price action.

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. The market is also in a position to post a potentially bearish closing price reversal top.

Taking out 23203 will change the minor trend to down. This could trigger an acceleration to the downside with the next target the minor bottom at 22951.

The short-term range is 22951 to 23436. Its retracement zone at 23194 to 23136 is support.

Daily Forecast

Based on the early price action, the Dow looks a little tired. The direction of the market today is likely to be determined by whether investors prefer to continue to buy strength, or play for a pullback into support.

Buyers could come in to trigger a breakout over 23436, but if this move fails to attract enough attention, a closing price reversal top could form.

We could see a pullback into 23194 to 23136. Since the main trend is up, buyers are likely to return on a test of this zone.

If 23136 is taken out then we could see an acceleration to the downside with the first target angle 22974, followed by a longer-term uptrending angle at 22932.