E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 31, 2014 Forecast

December E-mini Dow Jones Industrial Average futures are expected to open sharply higher after the Bank of Japan shocked the markets overnight with the announcement of fresh stimulus.

The upside momentum is there to take out the last resistance before the contract high. This angle is at 17159. The contract high is 17279. Taking out these levels with conviction should trigger a strong follow-through rally and turn these levels into support.

The key angle to watch on the upside is a steep angle, moving up 128 points per day from the 15769 bottom. This angle is at 17305. Overcoming and holding above this angle will put the market in an extremely strong position.

A break back under 17159 will be the first sign of weakness, but the real selling pressure will come in on a trade through 17039. The chart opens up under this price with 16799 the next likely target.

Although there is likely to be plenty of action between 17159 and 17305, the real volatility will take place if any of these levels is taken out with conviction.