E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 30, 2018 Forecast

The Dow is trading higher at the mid-session. The market is following through to the upside following a strong performance in the pre-market session. That move was fueled by positive news from China. Despite the early gains, traders remain cautious due to heightened volatility.

At 1524 GMT, December E-mini Dow Jones Industrial Average futures are trading 24598, up 167 or +0.68%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24086 will signal a resumption of the downtrend. The main trend will change to up on a move through 25845.

The minor trend is also down. A trade through 25007 will change the minor trend to up. This will also shift momentum to the upside. The next minor top comes in at 25338.

The major range is 23500 to 26966. Its retracement zone at 24824 to 25233 is controlling the near-term direction of the market. It is also resistance.

The minor range is 25007 to 24086. Its 50% level or pivot at 24547 is controlling the direction of the market today.

The main range is 25845 to 24086. Its retracement zone at 24966 to 25173 is the next upside target. It falls inside the major retracement zone, forming a resistance cluster.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the price cluster at 24534 to 24547.

A sustained move over 24547 will indicate the presence of buyers. The next upside target is a downtrending Gann angle at 24693. This is a potential trigger point for an acceleration to the upside with the next targets lined up at 24824, 24966 and 25007.

A sustained move under 24534 will signal the presence of sellers. The daily chart is wide open under this level if there is enough downside momentum. The first target is yesterday’s low at 24086, followed by the June 28 main bottom at 24000.

Today’s inside move suggests investor indecision and impending volatility. Any rally is likely to be labored until the market can clear the series of potential resistance levels. The key to shifting momentum to the upside will be the buying volume on a move through 25007.