E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 27, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. Earlier today, the market reached a record high before turning lower. The new high was only made by only 8 points before the market turned lower, suggesting the move was fueled by buy stops rather than fresh buying.

A lower close today will form a potentially bearish closing price reversal top so investors should pay attention to how investors react to Friday’s close at 20787 throughout the day.

Technical Analysis

The main trend is up according to the daily swing chart. A move through the intraday high at 20825 will signal a resumption of the buying.

A trade through 20695 will turn the minor trend to down.

The short-term range is 20695 to 20825. Its 50% level or pivot is 20760. This price is controlling the short-term direction of the market.

The main range is 19713 to 20825. If a sell-off begins to gain traction then its retracement zone at 20269 to 20138 will become the primary downside target.

Forecast

The direction of the Dow today will be determined by trader reaction to Friday’s close at 20787. Now that we’ve seen the higher-high, a move under this price will put the Dow in a position to post a closing price reversal top.

This could trigger the start of a 2 to 3 day correction.

Traders should also watch the reaction to the pivot at 20760. This is another potential trigger point for an acceleration to the downside.

The final level to watch is 20695. A failure to this price will break the chart pattern and signal that the selling is greater than the buying. The chart indicates there is plenty of room to the downside with potential targets coming in at 20289 and 20269.

Overcoming the uptrending angle at 20865 will put the Dow in an extremely bullish position.