Based on the early price action, the direction of the Dow today is likely to be determined by trader reaction to the downtrending Gann angle at 24382.
March E-mini Dow Jones Industrial Average futures are called steady to higher shortly before the opening. The market was trading higher early in the session, but price retreated after reports of an explosion in New York.
The main trend is up according to the daily swing chart. A trade through 24542 will signal a resumption of the uptrend. A move through 24086 will change the main trend to down.
The short-term range is 24542 to 24086. Its retracement zone at 24370 to 24317 is acting like support. This zone is important because sellers may try to form a secondary lower top on a test of this area.
Based on the early price action, the direction of the Dow today is likely to be determined by trader reaction to the downtrending Gann angle at 24382.
Overtaking 24382 will indicate the return of buyers. This could drive the market into the next downtrending angle at 24462. This is the last major resistance angle before the 24542 main top.
A sustained move under 24382 will signal the return of sellers. This could lead to a labored move with potential support at 24370, 24317 and 24289.
A break through 24289 could trigger a break into 24214. This is the trigger point for an acceleration into the main bottom at 24086.
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.