E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 20, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher during the pre-market session. Earlier in the session, the market took out the previous high at 20632, only to find resistance at 20646.

Not much for a rally, but it’s early and the volume is thin. Unfortunately, the volume may be light all day because it’s a bank holiday in the U.S. None-the-less, investors have to be prepared for the occasional volatility spike.

Additionally, the session begins with the Dow in the window of time to produce a potentially bearish closing price reversal top. Now that the market has made a higher-high, last Friday’s close at 20588 will be very important the entire session.

An intraday break below 20588 will signal the presence of sellers. A close below this price will produce a closing price reversal top.

Technical Analysis

The main trend is up according to the daily swing chart. The market is far from changing the main trend to down, however. If you are looking to get short then it’s probably best to watch for the intraday reversal or the daily chart reversal.

Forecast

Based on the current price at 20637 and the earlier price action, the direction of the Dow today is likely to be determined by trader reaction to the uptrending angle at 20609.

A sustained move over 20609 will indicate the presence of buyers. This will keep the upside momentum intact.

A sustained move under 20609 will signal the presence of sellers. The daily chart is wide open to the downside under this angle so we could see the start of an acceleration to the downside with the next major target coming in at 20180 to 20161.