E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 28, 2017 Forecast

Traders are calling for the March E-mini Dow Jones Industrial Average futures contract to open lower on Tuesday. There was no follow-through to the upside after yesterday’s record high. The Dow is currently trading inside yesterday’s range which suggests investor indecision and impending volatility.

The main trend is up according to the daily swing chart. A trade through 20834 will signal the presence of buyers.

The minor trend will turn lower on a trade through 20695.

The short-term range is 20695 to 20834. Its 50% level or pivot is currently providing support.

The main range is 19713 to 20834.  If there is a meaningful correction then its retracement zone at 20274 to 20141 will become the primary downside target.

Based on the current price at 20806 and the earlier price action, the direction of the Dow today is likely to be determined by trader reaction to the short-term pivot at 20765.

Holding above 20765 will indicate the presence of buyer. Taking out yesterday’s high at 20834 will indicate the buying is getting stronger. This could create enough upside momentum to challenge the uptrending angle at 20929.

Overtaking the angle at 20929 will put the Dow in an extremely bullish position.

A sustained move under 20765 will signal the presence of sellers. This will indicate a shift in investor sentiment. This may generate enough downside momentum to test the minor bottom at 20695.

If 20695 is taken out with conviction then start preparing for the start of an acceleration to the downside. The daily chart indicates there is plenty of room to the downside with 20321 the next likely downside target.