E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 20, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are called flat-to-lower shortly before the cash market opening. Investors are waiting for the Fed’s decisions at 1800 GMT. The market has gone on a tremendous run over the past two weeks so bullish news may already be priced into the market. Additionally, investors may use the Fed as an excuse to book profits or pare positions.

Investors may be rattled if the Fed’s plan to reduce its balance sheet turns out to be more aggressive than expected and if the central bank strongly hints at a December rate hike.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The Dow isn’t in a positon to turn the trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

We’ve already had the higher-high in the pre-market session. Now all we need is the lower close. Yesterday’s close was 22336.

Given the current chart pattern, the Dow is either going to take off to the upside since there is no resistance, or it is going to close under 22336 and produce a closing price reversal top.

Daily Forecast

Watch the price action and read the order flow at 22336 all session. Look for a bullish tone to develop on a sustained move above this level. Look for a bearish tone to develop if sellers continue to press the market through this level.

There is plenty of room to the downside if there is a sell-off. The first potential support level is the former top at 22089, followed by the uptrending angle at 22035.