E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 25, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. Investors are reacting to a possible change in U.S. healthcare and the surprise election results in Germany.

Later today, investors will get the opportunity to react to several Fed speakers including FOMC Members William Dudley, Charles Evans, and Neel Kashkari. Their speeches could cause volatility in the market especially if they talk about monetary policy and the timing of the next rate hike.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 22389 will signal a resumption of the uptrend. A move through 22258 will change the minor trend to down.

The short-term range is 22389 to 22258. Its 50% level or pivot at 22324 is controlling the direction of the Dow today.

Potential downside targets include the former top at 22089 and the major retracement zone at 21972 to 21874.

Daily Forecast

Based on the current price at 22284 and the earlier price action, the direction of the Dow today is likely to be determined by the downtrending angle at 22293.

A sustained move under 22293 will signal the presence of sellers. This could lead to a test of the low at 22258. This is a potential trigger point for an acceleration to the downside with the next target an uptrending angle at 22131.

Overcoming 22393 and sustaining the move will indicate the return of buyers. This could trigger a labored rally with potential targets coming in at 22324, 22341 and 22365. The latter is the last potential resistance angle before the 22389 main top.

Watch the price action and read the order flow at 22293 all session. Trader reaction to this price will tell us if the buyers or sellers are in control.