E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 31, 2018 Forecast

December E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The market is currently trading inside a major retracement zone and testing a minor retracement zone. Buyers are going to have to claw through this zone in order to attract additional buyers. Otherwise, short-sellers are going to regain control in an effort to form a secondary lower top.

E-mini Dow Jones Industrial Average
Daily December E-mini Dow Jones Industrial Average

Daily 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 trade through 24086 will signal a resumption of the downtrend.

The minor trend is up. The minor trend changed to up earlier today when buyers took out the minor top at 25007. This also shifted momentum to the upside. The next minor top target is 25338.

The major retracement zone is 24824 to 25233. Inside this zone is a minor retracement zone at 24966 to 25173. These zones are currently being tested. They are controlling the near-term direction of the Dow.

Since the main trend is down, sellers may come in on a test of these zones. They are going to try to form a secondary lower top. Buyers are going to try to drive the Dow through these zones.

Daily Technical Forecast

Based on the early trade, the direction of the December E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the short-term 50% level at 24966.

A sustained move over 24966 will indicate the buying is getting stronger. This could trigger a rally into a cluster of levels. The first target is the minor Fibonacci level at 25173, followed by a downtrending Gann angle at 25205 and a 50% level at 25233. Watch for sellers on the first test of this area. Taking out 25233 could trigger an acceleration to the upside.

A sustained move under 24966 will signal the return of sellers. The first downside target is the major Fib level at 24824. If this level fails then look for the selling to extend into a steep uptrending Gann angle at 24598.

Basically, look for an upside bias on a sustained move over 24966. Look for a downside bias to develop on a sustained move under 24824.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.