E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 8, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open lower based on the pre-market trade. The weakness is being driven by worries over rapidly rising interest rates and a decline in overseas stocks, led by China, which is under pressure after a week-long holiday.

U.S. banks and the U.S. Treasury are closed today due to the Columbus Day holiday. This likely means volume is going to be below average. With this in mind, be careful selling weakness or buying strength and watch out for whip-saw trading conditions.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Friday when sellers took out 26347. A trade through 26966 will change the main trend to up. If the selling pressure continues today, then 25991 will become the next main bottom target.

The main range is 25784 to 26966. The Dow is currently testing its retracement zone at 26375 to 26236. This zone is controlling the near-term direction of the market.

The intermediate range is 25991 to 26966. Its 50% or pivot level is 26479.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini Dow Jones Industrial Average futures contract will be determined by trader reaction to the 50% level at 26375.

A sustained move under 26375 will indicate the presence of sellers. This could trigger a break into the Fibonacci level at 26236. This is followed closely by an uptrending Gann angle at 26215.

The daily chart opens up to the downside under 26215 with the next target angle coming in at 26088. This is the last key Gann angle support before the main bottom at 25991.

A sustained move over 26375 will signal the return of buyers. This could trigger a labored rally with targets coming in at 26439, 26479 and a downtrending Gann angle at 26582. Since the main trend is down, look for sellers to come in on a test of this angle.

Taking out 26582 could trigger an acceleration to the upside.