December E-mini Dow Jones Industrial Average futures rallied to another record level on Friday after the October jobs report came in better than expected, boosting optimism about the economic recovery. The strong rebound in the market negated the possible negative implications of yesterday’s divergent closing price reversal top.
At 18:51 GMT, December E-mini Dow Jones Industrial Average futures are trading 36218, up 209 or +0.58%.
Helping to support the blue chip average was data that showed job gains for the month of October totaled 531,000, Consensus estimates called for 450,000 jobs added, according to Dow Jones. The report also revised September’s disappointing number up to 312,000 job gains from 194,000 previously, and increased its August number by a similar amount.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at 36375 will signal a resumption of the uptrend. A move through 33984 will change the main trend to down.
The minor trend is also up. A trade through 35383 will change the minor trend to down. This will shift momentum to the downside.
The new minor range is 35383 to 36375. Its 50% level at 35879 is the nearest support. Additional support is a 50% level at 35180. This is followed by the short-term retracement zone at 34879 to 34526.
Daily Swing Chart Technical Forecast
The direction of the December E-mini Dow Jones Industrial Average into the close on Friday is likely to be determined by trader reaction to 36009.
A sustained move over 36009 will indicate the presence of buyers. If this move creates enough upside momentum late in the day then buyers may take a run at 36375.
A sustained move under 36009 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to continue into the 50% level at 35879.
Buyers could come in on the first test of 35879, but if it fails to hold then look for the start of an acceleration to the downside with 35383 the next likely target.