E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 2, 2016 Forecast
December E-mini Dow Jones Industrial Average futures are expected to open flat to lower as investors digest the U.S. Non-Farm Payrolls report. The price action suggests that investors are indifferent to the report. Average Hourly Earnings came in below expectations at -0.1%. The headline number came in t 178K, nearly equal to the 177K estimate. The Unemployment Rate was the surprise. It came in at 4.6%, well below the 4.9% forecast.
Technical Analysis
The main trend is up according to the daily swing chart. A trade through 19215 will signal a resumption of the uptrend. The market is far from turning the main trend to down. However, it is in the window of time for a potentially bearish closing price reversal top.
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The short-term range is 18756 to 19215. A trade through 18756 will turn the main trend to down on the daily swing chart. Its retracement zone at 18986 to 18931 is the primary downside target.
Forecast
The December E-mini Dow Jones Industrial Average futures contract is currently trading in the middle of nowhere.
On the upside, a sustained move over 19215 will be bullish and signal the presence of buyers with 19466 the next likely target.
On the downside, the next main target is the short-term retracement zone at 18986 to 18931. If this zone fails as support then look for a possible break into the minor bottom at 18756. This the trigger point for an acceleration to the downside. The major targets come in to day at 18442, 18317 and 18104.
The chart pattern suggests we should start preparing for volatility because the Dow is too far from support and too far from resistance.
Watch the price action and read the order flow at 19144 today. This is last week’s close. A close below this level will raise red flags about the strength of the Dow because it will produce a potentially bearish closing price reversal top.