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James Hyerczyk
Daily E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures crawled out of an earlier hole on Monday to close marginally higher for the trading session. The market continued to be supported by an optimistic outlook for earnings, which ignited last week’s rally. These positive expectations seemed to offset any concerns over Brexit and U.S.-China trade relations.

On Monday, December E-mini Dow Jones Industrial Average futures settled at 26797, up 43 or +0.16%. Early Tuesday, the Dow is trading 0.17% higher after taking out yesterday’s high.

Apple shares led the Dow higher, rising more than 1.5% to a record high after an analyst at Raymond James hiked his price target on the tech giant to $280 per share from $250. Those gains offset a 3.8% drop in Boeing stock.

Daily December E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27088 will signal a resumption of the downtrend. The main trend is safe at this time, a trade through 25983 will change it to down.

The minor trend is also up. A move through 26701 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 27088 to 26701. Its 50% level or pivot at 26895 is the next upside target. A test of this level will reveal whether the buyers have the power to drive into the main top at 27088, or if the sellers are ready to take control with the formation of a secondary lower top.

Perhaps preventing a steep plunge in the market is a series of retracement levels at 26473, 26396, 26278, 26195 and 26034.


Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 26842, the direction of the December E-mini Dow Jones Industrial Average futures contract on Tuesday is likely to be determined by trader reaction to the pivot at 26895.

Bullish Scenario

A sustained move over 26895 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the nearest main top at 27088. This is a potential trigger point for an acceleration into a series of main tops at 27262, 27312 and 27375.

Bearish Scenario

A sustained move under 26895 will signal the presence of sellers. The first target is the minor bottom at 26701. Taking out this bottom will change the minor trend to down. This could trigger a near-term break into the main Fibonacci level at 26473, followed by a number of retracement levels.

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