March E-mini Dow futures rallied over 200 points on the opening as investors reacted positively to developments over tax reform over the week-end. Investors are optimistic that the bill has overcome all the major objections and is ready for a Senate vote. If approved, President Trump should sign the bill into law before the end of the week.
Daily Technical Analysis
The main trend is up according to the daily swing chart. There is no resistance and the market is being driven by strong upside momentum. A closing price reversal top will be the first sign that momentum is getting ready to shift to the downside. The key level to watch all session is Friday’s close at 24677.
An intraday move through 24677 will indicate the selling is greater than the buying at current price levels.
The first major uptrending Gann angle comes in at 24609. The next angle is at 24534. This angles are potential trigger points for steep sell-offs.
Intraday top-pickers should watch for a closing price reversal top on the 60- or 15-minute charts, or the formation of an “M” top. These are usually reliable signs that a short-term top is being formed.
Longer-term investors should watch for a daily reversal top because this will give you a quicker exit signal than breaking the main swing bottom at 24086.