E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens into Close Over 25233, Weakens Under 25177

December E-mini Dow Jones Industrial Average futures are trading higher after reversing earlier weakness. The rebound is being fueled by a rally in bank stocks, led by J.P. Morgan Chase and Apple, which is trying to pull away from bear market territory. Technical factors are also playing a role into today’s choppy, two-sided trade.

At 1938 GMT, December E-mini Dow Jones Industrial Average futures are trading 25300, up 256 or +1.02%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, the momentum is trending lower. A trade through 26268 will reaffirm the uptrend. A move through 24086 will change the main trend to down.

The minor trend is down. It turned down on Wednesday when sellers took out the minor bottom at 25035. This move shifted momentum to the downside.

The key area to watch is the major retracement zone at 25233 to 24824. Inside this range is another short-term retracement zone at 25177 to 24920.

On the upside the main retracement zone is 25526 to 25866. This is the primary upside target.

Daily Swing Chart Technical Forecast

Given the early price action, the direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the pair of 50% levels at 25233 and 25177.

A sustained move over 25233 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into the main 50% level at 25526. This is another trigger point for an acceleration to the upside with 25866 the next target.

A sustained move under 25177 will signal the presence of sellers. If this move generates enough downside momentum then look for a drive into the pair of Fibonacci levels at 24920 and 24824.

The daily chart still indicates the way of least resistance is to the downside. A sustained move under 24824 could trigger a steep drop into a pair of main bottoms at 24086 and 24000.

Longer-Term Outlook

A sustained move over 25233 will indicate the presence of buyers. A sustained move under 24824 will signal the presence of sellers.