E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 26, 2015 Forecast
December E-mini Dow Jones Industrial Average futures continue to grind higher during the shortened electronic session today. Volume is expected to be well-below average because today is a U.S. bank holiday and the cash markets are closed.
Despite the high probability the Fed will raise rates in December, the Dow has fully recovered from the selling pressure earlier in the month. Investors are currently discounting the December rate hike. Additionally, they don’t seem to be too worried about future rate hikes because the Fed is likely to take it time implementing those.
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Traders also believe the economy is strong enough to handle a rate hike at this time so they don’t feel that earnings will be affected too much by higher rates.
Technically, the main trend is up according to the daily swing chart. Earlier in the session, the market took out the last potential resistance angle before the 17884 minor top and the 17906 main top. This angle, at 17842, is now new support.
A failure to sustain a move over this angle will indicate the presence of sellers. This could trigger an intraday break into the next angle at 17778.
The direction of the market today is likely to be determined by trader reaction to 17842. Treat this angle like a pivot. Be careful buying strength and selling weakness today because volume will be light as well as volatility.