E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 22, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening as investors try to claw back some of yesterday’s losses.

Sellers followed through to the downside earlier in the session after yesterday’s massive intraday reversal. However, the selling volume dried up rather quickly and the Dow posted an intraday reversal to the upside. The early rally is probably being fueled by short-covering and some aggressive buying.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 25424 will change the main trend to up.

The main range is 26684 to 23088. Its retracement zone is 24886 to 25310. This zone is controlling the short-term direction of the market. Earlier in the week, it provided resistance. Currently, the Dow is testing the lower or 50% level at 24886.

The new short-term range is 23088 to 25424. If the selling pressure continues then its retracement zone at 24256 to 23980 will become the primary downside target.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the index the rest of the session will be determined by trader reaction to the 50% level at 24886.

A sustained move over 24886 will indicate the presence of buyers. If this generates enough upside momentum then look for the rally to extend into the Fibonacci level at 25310. This is followed by the main top at 25424.

Taking out 25424 will change the main trend to up. This could trigger an acceleration to the upside since there is no true resistance until 26684.

A sustained move under 24886 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside under today’s intraday low at 24576. If this move triggers an acceleration to the downside then sellers will set their sights on 24256 to 23980.