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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Vulnerable to Steep Sell-off Under 27495 Gann Angle

Based on the price action late in the session and the current price at 27639, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to Monday’s close at 27658.
James Hyerczyk
E-mini Dow Jones Industrial Average
E-mini Dow Jones Industrial Average

December E-mini Dow Jones Industrial Average futures have been treading water most of the session on Tuesday despite the benchmark index hitting a record high earlier in the day. Shortly after the opening, the market rose amid remarks from President Donald Trump, who hinted at Chinese enthusiasm for a trade deal, while knocking them for cheating the U.S. in past agreements.

At 20:25 GMT, December E-mini Dow Jones Industrial Average futures are trading 27639, down 19 or -0.07%.

Stocks fell about an hour before the cash market close when shares of Apple turned lower for the session. Apple is a major component in the Dow so its price action has a strong influence on the movement of the Dow.

The Dow futures contract has also diverged slightly from the cash market. The cash Dow hit an all-time high this week, while the futures contract remained under its record high reached last week.

Daily December E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 27739 will signal a resumption of the uptrend. The main trend will change to down on a trade through 26588, but this is highly unlikely today.

The minor trend is also up. A trade through 27337 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is 27337 to 27739. Its 50% level or pivot at 27538 is the first downside target.

The second minor range is 26847 to 27739. Its pivot at 27293 is the next downside target.

Daily Technical Forecast

Based on the price action late in the session and the current price at 27639, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close is likely to be determined by trader reaction to Monday’s close at 27658.

Bullish Scenario

A sustained move over 27658 will indicate that buyers are still coming in to support the Dow. This could create the upside momentum to challenge 27739 late in the day.

Bearish Scenario

A sustained move under 27658 will signal the presence of sellers. If this generates enough downside momentum into the close then look for a test of the first pivot at 27538. There could be a technical bounce on the first test of the pivot, but if it fails then look for the selling to possibly extend into the steep uptrending Gann angle at 27495.

This angle has been guiding the market higher for 28 weeks. Crossing to the weak side of 27495 could trigger the start of a steep sell-off.

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