E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 12, 2015 Forecast

March E-mini Dow Jones Industrial Average futures are called better. The primary catalyst for the rally was the news of a peace agreement between Russia and Ukraine. Just a short while ago, the U.S. Commerce Department issued a potentially bearish retail sales report for January. This has the potential to turn the market lower especially since the market is butting up against the contract high.

According to the Commerce Department, U.S. retail sales fell 0.8 percent in January. Investors were looking for a reading of -0.5%. Core Retail Sales fell by 0.9% versus an estimate of -0.4%.

Weekly unemployment claims were also bearish. Traders were looking for 282K new claims. The actual number in the report was 304K. At 10:00 a.m. ET, traders will get a chance to react to the latest Business Inventories data.

Technically, the Dow found support in the pre-market session at a downtrending angle at 17795. Shortly before the opening, it is testing another downtrending angle at 17923. This is the last angle before the contract high at 18051.

Overcoming the steep uptrending angle at 17986 will also be a sign of strong buying.

Look for a sustained upside bias if buyers can hold the market above 17923. Later in the session, the tone will be determined by trader reaction to the angle at 17795.

The daily chart opens up under 17795 with the next potential target an uptrending angle at 17474.

Watch the price action and order flow early in the session at 17923 and later in the session at 17795 if necessary.