E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Strengthens into Close Over 27088, Weakens Under 27064

December E-mini Dow Jones Industrial Average futures are trading higher on Monday shortly before the cash market close. Strong earnings and progress on U.S.-China trade talks are the catalysts behind the rally. Helping to boost the Dow is a surge in the S&P 500 Index to a new all-time high. The Dow is also within striking distance of its all-time high.

At 19:35 GMT, December E-mini Dow Jones Industrial Average futures are at 27046, up 142 or +0.52%.

Walgreens Boots Alliance, AT&T and Spotify are among the companies that reported stronger-than-forecast profits on Monday. Apple, UnitedHealth and J.P. Morgan Chase are among the stocks helping the Dow Jones Industrial Average. Apple shares are up more than 10% in October amid optimism around iPhone 11 sales. UnitedHealth has rallied 12.7% for the month through Friday’s close, while J.P. Morgan Chase has gained 7.1% amid expectations that interest rates have bottomed.

In corporate news, another Dow component, Microsoft climbed 2% after snagging a $10 billion defense contract.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Monday when buyers took out the previous main top at 27088. The new main bottom is 26588. A trade through this bottom will change the main trend to down.

The main range is 27312 to 25703. Its retracement zone at 26697 to 26508 is support. Last week, this zone stopped the selling at 26588.

Daily Technical Forecast

The direction of the December E-mini Dow Jones Industrial Average into the close is likely to be determined by trader reaction to the downtrending Gann angle at 27064.

Bullish Scenario

A sustained move over 27064 will indicate the presence of buyers. If this creates enough upside momentum into the close then look for the rally to possibly extend into the main top at 27262 and another downtrending Gann angle at 27308. This is the last potential downtrending Gann angle before the main top at 27312 and the all-time high at 27338.

Bearish Scenario

A sustained move under 27064 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into the major uptrending Gann angle at 26791. This angle, moving up at a rate of 64 points per day from the 25703 main bottom has been guiding the Dow higher since October 3 or for 17 trading sessions.