E-mini Dow Jones Industrial Average (YM) Futures Analysis – December 1, 2016 Forecast

December E-mini Dow Jones Industrial Average futures managed to eke out a small gain on Wednesday after posting a new all-time high. However, the rallied looked labored as buyers seemed a little tentative at current lofty levels.

The main trend is up according to the daily swing chart. The main trend is far from turning down, but the Dow is in the window of time for a closing price reversal top. The Dow is also trading below last week’s close at 19144, putting it in a position to post a potentially bearish weekly closing price reversal top on Friday.

Taking out 19042 will turn the minor trend to down. The next minor bottom comes in at 18756.

The short-term range is 19042 to 19215. Its 50% level at 19128 should act like a pivot. This level is currently being tested.

The intermediate range is 18756 to 19215. Its retracement zone at 18985 to 18931 is the next potential downside target.

The main range is 17418 to 19215. If there is a major sell-off then its retracement zone at 18317 to 18104 will become the primary downside target.

Based on the current price at 19126, the direction of the market today is likely to be determined by trader reaction to 19128.

Look for the upside bias to continue on a sustained move over 19128. The first target is 19215. Overcoming a steep uptrending angle at 19338 will put the Dow in an extremely bullish position.

A sustained move under 19128 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target 19042. This is followed by another retracement zone at 18985 to 18931.

Taking out the zone could trigger an acceleration to the downside. The chart shows plenty of room to the downside with 18756 the next likely target.