E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 27, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. Later today, traders are likely to react to the announcement of Trump’s tax reform plan.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Short-term momentum is down. A trade through 22174 will indicate downside momentum is getting stronger. A trade through 22389 will signal a resumption of the uptrend.

The short-term range is 22389 to 22174. Its 50% level or pivot is 22282. This price is controlling the short-term direction of the market.

If 22174 fails as support then look for a move into the last main top at 22089. The main range is 21555 to 22389. A sharp sell-off could drive the index into its 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 is likely to be determined by trader reaction to the pivot at 22282.

A sustained move over 22282 will signal the presence of buyers. This is followed by a pair of downtrending angles at 22309 and 22349. The latter is the last potential resistance angle before the 22389 main top.

A sustained move under 22282 will indicate the presence of sellers. This could lead to a break into a pair of Gann angles at 22229 and 22195.

The major angle is 22195. Crossing to the weak side of this angle will indicate the selling pressure is getting stronger. This could lead to further weakness with targets at 22174 and 22089.