March E-mini Dow Jones Industrial Average futures are expected to open sharply lower. Earlier in the session, the market traded down to 15505. The selling
March E-mini Dow Jones Industrial Average futures are expected to open sharply lower. Earlier in the session, the market traded down to 15505. The selling stopped slightly above the uptrending angle at 15493. This is the last potential support angle before the 15365 main bottom.
The main trend is down according to the daily swing chart. A trade through 15365 will signal a resumption of the downtrend. This could trigger a further break into 15174.
Holding the angle at 15493 will indicate that buyers are coming in to defend the main bottom at 15365. Overcoming the next uptrending angle at 15621 will indicate that the buying is getting stronger. This could create enough upside momentum to challenge the Fibonacci level at 15770. This is followed by a potential resistance cluster at 15877, 15896 and 15914.
Today is also the eighth day down from the 16426 main top. This means the session will begin with the Dow in the window of time for a potentially bullish secondary higher bottom and closing price reversal bottom. Now that we’ve already seen a lower-low, we need to have a close over 15866 to produce a closing price reversal bottom.
Watch the price action and read the order flow at 15493 and 15621 today. Look for an upside bias on a sustained move over 15621 and a downside bias on a sustained move under 15493.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.