E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 9, 2018 Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average today is likely to be determined by trader reaction to a pair of Gann angles at 26454 and 26471.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

The E-mini Dow Jones Industrial Average futures contract is trading lower during the pre-market session. Worries over rising U.S. interest rates and their effect on corporate profits is driving the price action. On Tuesday, the U.S. 10-year Treasury yield and the 30-year Treasury yield rose to fresh multi-year highs. Higher yields are a concern because they tend to cap corporate profits, thus reducing possible dividend payouts and wages for employees.

At 1015 GMT, the December E-mini Dow Jones Industrial Average futures contract is trading at 26421, down 123 or -0.47%.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s minor reversal bottom suggests momentum may be shifting to the upside. A trade through 26226 will negate the reversal bottom and signal a resumption of the downtrend. A move through 26966 will change the main trend to up.

The main range is 25784 to 26966. Its retracement zone at 26375 to 26236 is controlling the near-term direction of the market. Holding above this zone today will help give the Dow an upside bias.

The short-term range is 26966 to 26226. Its retracement zone is 26596 to 26683. Since the main trend is down, sellers are likely to come in on a test of this zone. Overtaking it will indicate the buying is strengthening.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average today is likely to be determined by trader reaction to a pair of Gann angles at 26454 and 26471.

A sustained move under 26454 will indicate the presence of sellers. This could drive the Dow into 26375. If this level fails then look for a potential plunge into a support cluster at 26236, 26231 and 26226. Watch for a technical bounce on the first test of this area.

If 26226 fails as support then look for the selling to extend into the next uptrending Gann angle at 26104, followed by the main bottom at 25991. The selling could extend under this bottom with the next target angle coming in at 25944. This is the last potential support angle before the 25784 main bottom.

A sustained move over 26471 will signal the presence of buyers. If this creates enough upside momentum then look for the rally to extend into 26596, followed by 26683 and 26710. Look for sellers on a test of this area. Taking out 26710 could trigger an acceleration to the upside.

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