E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 2, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. The Dow is also in a position to post a potentially bearish closing price reversal top. This could lead to a 2 to 3 week correction. Last week’s close was 26604.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the daily closing price reversal top on January 29.

A trade through 26684 will negate the closing price reversal top and signal a resumption of the uptrend. The market is not in a position to change the main trend to down, but there is room to the downside on the daily chart.

The first 50% to 61.8% target zone is currently being tested at 25953 to 25780.

The second retracement zone target is 25385 to 25078. This is also the primary downside target.

Since the main trend is up, a test of any of the retracement zones could attract buyers.

Daily Technical Forecast

Based on the early price action, the direction of the Dow the rest of the session is likely to be determined by trader reaction to the 50% level at 25953.

A sustained move under 25953 will indicate the presence of sellers. This could drive the Dow into the Fibonacci level at 25780.

The Fib level is the trigger point for an acceleration to the downside with the next major targets a 50% level at 25385 and a long-term uptrending Gann angle at 25301.

A sustained move over 25953 will signal the presence of buyers. The first target is the steep downtrending Gann angle at 26172. We could see sellers come in on the first test of this angle.

The Gann angle at 26172 is also the trigger point for an acceleration to the upside with the next target angle coming in at 26428.