E-mini Dow Jones Industrial Average (YM) Futures Analysis – Weakens Under 25233, Strengthens Over 25369

December E-mini Dow Jones Industrial Average futures are trading lower early Monday. The price action has turned 25845 into a new main top. The downside momentum is building which could lead to a test of the last main bottom and a major Fibonacci level that held as support nearly two weeks ago.

At 0454 GMT, December E-mini Dow Jones Industrial Average futures are trading 25094, down 200 or -0.79%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24893 will signal a resumption of the downtrend. The main trend will change to up on a move through 25845.

The main range is 23500 to 26966. Its retracement zone is 25233 to 24824. The main range is actually the range for the year. The retracement zone held as support when sellers tested 24893 on October 11.

The short-term range is 26966 to 24893. Its retracement zone at 25930 to 26174 is resistance.

Another short-term range is 24893 to 25845. Its 50% level or pivot is 25369. This level is controlling the near-term direction of the market. Trading below it is helping to give the Dow a downside bias today.

Daily Swing Chart Technical Forecast

Based on Monday’s close at 25294 and the early price action, the direction of the December E-mini Dow Jones Industrial Average on Tuesday is likely to be determined by trader reaction to the main 50% level at 25233.

A sustained move under 25233 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the main bottom at 24893, followed by the main Fibonacci level at 24824.

We could see a technical bounce on the first test of 24824, but if it fails then look for an acceleration to the downside. The daily chart indicates there is plenty of room to the downside with the next major target the June 28 main bottom at 24000.

A sustained move over 25233 will signal the return of buyers. This should lead to a quick test of the short-term 50% level at 25369. This is a potential trigger point for an acceleration to the upside with the next upside targets layered at 25845, 25930 then 26174.