December E-mini Dow Jones Industrial Average futures are expected to open higher. The bullish price action is being driven by strong corporate earnings from Mondelez and Mastercard. Other companies, including Kellogg and Aetna, also posted quarterly earnings that beat the Street.
The trade remains a little cautious ahead of tomorrow’s Federal Reserve monetary policy decision and President Trump’s announcement for Fed chair.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been drifting lower since October 24.
A trade through 23436 will signal a resumption of the uptrend. A move through 23203 will change the minor trend to down.
The short-term range is 22951 to 23436. Its retracement zone at 23194 to 23136 is support. If 23136 fails as support then prices could accelerate into the next minor bottom at 22951.
Daily Forecast
Holding above the retracement zone at 23194 to 23136 is helping to give the Dow an upside bias. If the move generates enough upside momentum, we could see a drive into 23436.
If the early rally fails and selling pressure increases then look for a possible break through 23203 and into the short-term retracement zone. Since the main trend is up, we could see buyers re-emerge on a test of this zone.
If 23136 fails as support then look for an extension to the downside with the targets a pair of uptrending angles at 23006 and 22962. This is followed by the minor bottom at 22951.
Basically, we’re looking for an upside bias as long as 23194 to 23136 holds as support.