E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 4, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening. Blue chip stocks are being pressured on Thursday by rapidly rising interest rates and the fear that the Fed may have to raise rates more aggressively in order to prevent the economy from overheating. This morning, the benchmark 10-year Treasury note yield reached its highest level since 2011. It took out 3.2 percent before settling back to 3.185 percent.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26966 will signal a resumption of the uptrend. The main trend will change to down on a trade through 26347.

The short-term range is 26347 to 26966. Its retracement zone is 26657 to 26583. This is the first downside target. We could get a technical bounce on the first test of this zone.

The main range is 25991 to 26966. Its retracement zone at 26479 to 26363 is the next downside target. Since the main trend is up, buyers could come in on a test of this zone. If it fails then look for the selling pressure to increase.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the uptrending Gann angle at 26759.

A sustained move under 26759 will indicate the presence of sellers. This could lead to a labored break, however, because of the large number of retracement levels and Gann angles.

The first target is the retracement zone at 26657 to 26583. Inside this zone is an uptrending Gann angle at 26603.

The second target is the retracement zone at 26479 to 26363. Inside this zone are a pair of uptrending Gann angles at 26475 and 26375.

The daily chart opens up to the downside under 26347. This move will change the trend to down and it could trigger a steep break into 26183.

A sustained move over 26759 will signal the presence of buyers. The first upside target angle is 26859. Crossing to the strong side of this angle should lead to a test of 26966.