E-mini Dow Jones Industrial Average (YM) Futures Analysis – October 3, 2017 Forecast

James Hyerczyk
Updated
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December E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening. This type of vertical price action tends to end with a higher-high, lower close (Closing Price Reversal Top) so don’t try to pick a top. Let it form then sell weakness.

The mutual funds and pensions are on a first of quarter buying spree. The rally will end when they stop buying or the markets are hit with an unexpected event like the removal of Fed Chair Janet Yellen and issues with her replacement, trouble with the tax reform package or the re-emergence of North Korea.

Make sure you have an exit in mind or the market will give you one and usually it’s at an unfavorable price level.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Weakness could develop if the market falls below the previous main top at 22389. The trend will change to down on a move through 22174.

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

Daily Forecast

The Dow is currently riding up a Gann angle moving at the rate of 64 points per day from the 22174 main bottom. It comes in at 22558 today. Crossing to the strong side of this angle and sustaining the move will put the Dow in an extremely strong position.

A failure to overcome 22558 will indicate weak buying or strong selling. If sellers take control then we could see a steep break since the nearest support angles are at 22366 and 22323.

The angle at 22323 has been guiding the market higher since August 29. If this angle fails then this will mean momentum has shifted to the downside. This could drive the market into 22174. Taking out this level will change the trend.

Make sure you know the trend and the momentum at all times.

This article was originally posted on FX Empire

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