E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Buying Tentative as Market Nears Major Resistance

December E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market close. The market opened lower and spent most of the pre-market session on the weak side. The market spiked to its high for the session after a preliminary Brexit deal was announced. However, that was before the cash market opening. Since then the Dow has been treading water despite another day of good earnings results.

At 20:16 GMT, December E-mini Dow Jones Industrial Average futures are trading 26996, up 56 or +0.21%. That’s up from a low of 26876, and down from a high of 27088.

The price action suggests we’re in a news driven market. The below average volume and the inability to follow-through to the upside suggests investors are being a little tentative chasing the market higher at current price levels.

Furthermore. There is still some uncertainty over the final Brexit deal, worries over U.S.-China trade relations and concerns over the strength of the U.S. economy and whether the Federal Reserve will cut interest rates in less-than-two weeks.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. It was reaffirmed during the pre-market session when buyers took out Tuesday’s high at 27079. However, the buying was weak and the rally stalled at 27088. The main trend will change to down on a trade through 25983. This is highly unlikely, however, the daily chart indicates there is plenty of room to the downside.

Downside targets include a Fibonacci level at 26473, a pair of 50% levels at 26278 and 26195, and another Fibonacci level at 26034.

Daily Swing Chart Technical Forecast

At current price levels, buyers face a wall of resistance including a minor top at 27112, and three main tops at 27262, 27312 and 27375.

However, there is plenty of room to the downside with the next major support target coming in at 26473.

The chart pattern suggests any rally is likely to be labored, and any selling is likely to be volatile and hard. This makes since because of the number of overhanging uncertainties. The message is pretty clear:  Be careful buying strength this close to the all-time highs.