E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strengthens Over 25233, Weakens Under 24824

December E-mini Dow Jones Industrial Average futures finished higher on Wednesday. The rally was impressive, but all it represents is a short-term retracement of an almost month-long decline. Due to a series of retracement levels the rally is likely to continue to be labored until the trend changes to up.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through 25845 will change the main trend to up. A move through 24086 will signal a resumption of the downtrend.

The minor trend is up. It changed to up on Wednesday. This also shifted momentum to the upside. The next target is the minor top at 25338.

A pair of retracement zones proved to be resistance on Thursday. The market even settled inside these zones.

The major retracement zone is 25233 to 24824. Inside this zone is a short-term retracement zone at 24966 to 25173. Trader reaction to these zones will determine the near-term direction of the Dow.

The main range is 26966 to 24086. The next key retracement zone target is 25526 to 25866.

Since the main trend is down, we have to expect sellers to come in on a test of each level. This could lead to a labored rally. The strongest selling is likely to come in on a test of 25526 to 25866.

Daily Swing Chart Technical Forecast

Based on Wednesday’s close and the price action, the direction of the December E-mini Dow Jones Industrial Average on Thursday is likely to be determined by trader reaction to 24824 to 25233.

Holding inside 24824 to 25233 will indicate investor indecision and impending volatility.

A sustained move over 25233 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the main 50% level at 25526. Watch for sellers on the first test of this level.

Taking out 25526 will indicate the buying is getting stronger with 25845 to 25866 the next major upside target. Once again watch for sellers on the first test of this area.

The daily chart indicates there is plenty of room to the upside over 25866.

A sustained move under 24824 will signal the presence of sellers. The daily chart is wide open to the downside under this level with the next potential downside targets 24086 to 24000.