E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 28, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. The early price action suggests today will be a risk-off trading session. Investors are lightening up on long positions in reaction to lingering trade concerns and political worries over Italy’s budget and its relationship with the European Union.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 25991 will change the main trend to down. A move through 26820 will signal a resumption of the uptrend.

The short-term range is 26820 to 26355. Its 50% level or pivot is 26588. This is resistance.

The intermediate range is 25991 to 26820. Its 50% level or pivot at 26406 is the next downside target. This level is actually controlling the direction of the Dow today.

The main range is 25784 to 26820. Its retracement zone at 26302 to 26180 is the primary downside target. Inside this zone is a pair of uptrending Gann angles at 26247 and 26200. Since the main trend is up, buyers are likely to show up on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the December E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the 50% level at 26406.

A sustained move under 26406 will indicate the presence of sellers. This could trigger a break into the main 50% level at 26302, followed by a pair of uptrending Gann angles at 26247, 26200 and the main Fibonacci level at 26180.

The daily chart opens up to the downside under 26180 with 25991 the next major downside target.

Overcoming and sustaining a rally over 26406 will signal the presence of buyers. This could trigger a rally into a downtrending Gann angle at 26500. This angle provided resistance earlier today. Overtaking this angle is likely to lead to a rally into the short-term pivot at 27588, followed by a downtrending Gann angle at 26660.