E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 28, 2017 Forecast

December E-mini Dow Jones Industrial Average futures are trading slightly lower during the pre-market session. The market is also trading inside yesterday’s range, meaning there has been no follow-through to the upside, following yesterday’s strong surge.

The announcement of President Trump’s long-awaited tax reform plan helped drive prices higher on Wednesday, but the move wasn’t as dramatic as the rally in the S&P 500 which posted a new all-time high. It’s a little too early to call this a divergence.

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 22174 will shift momentum to the downside, but it will not change the trend to down.

The short-term range is 22389 to 22174. Its 50% level or pivot is 22282. The market has straddled this level the last three sessions. It is controlling the short-term direction of the market.

If 22174 fails as support then look for the selling to extend into the former top at 22089.

Daily Forecast

Based on the current price at 22289 (0912 GMT) and the earlier price action, the direction of the Dow futures contract today is likely to be determined by trader reaction to the pivot at 22282.

Overtaking the short-term downtrending angle at 22293 will indicate the buying is getting stronger. This could trigger a rally into the next downtrending angle at 22341. This is the last potential resistance angle before the 22389 main top.

A sustained move under the pivot at 22282 could trigger a spike to the downside into the long-term uptrending angle at 22227. This angle, moving up 32 points from the 21555 main bottom, has been guiding the market higher for 21 sessions. We could see a technical bounce on the first test of this angle.

The daily chart begins to open up to the downside under 21555 with the next target angle coming in at 22197. Crossing to the weak side of this angle could trigger a further break into this week’s low at 22174.