E-mini Dow Jones Industrial Average (YM) Futures Analysis – November 8, 2017 Forecast
December E-mini Dow Jones Industrial Average futures are expected to open flat-to lower based on the pre-market trade. There are no major reports today and earnings season is winding down so investors are likely to follow the news. The key events at this time are concerns over tax reform and exuberance over potential takeovers and mergers.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through 23557 will reaffirm the uptrend.
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A move through 23414 will make 23557 a new minor top. A trade through 23407 will change the minor trend to down. This is followed by minor bottoms at 23289 and 23203.
The minor range is 22951 to 23557. If there is a sell-off then its retracement zone at 23254 to 23182 will become the primary downside target.
Daily Technical Forecast
The inside move formed during the pre-market session suggests investor indecision and impending volatility.
The direction of the Dow today will likely be determined by how investors react to yesterday’s range.
Look for the rally to extend if 23557 is taken out with conviction, but continue to watch for a potentially bearish closing price reversal top.
Taking out the minor bottom at 23407 will signal a change in the chart pattern. This may be enough to trigger a few sell stops which could lead to a sharp break.
The daily chart indicates there is plenty of room to the downside with potential targets a 50% level at 23254, an uptrending Gann angle at 23198, a Fibonacci level at 23182 and a long-term uptrending Gann angle at 23156.