E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 8, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are trading mixed shortly after the opening. The price action suggests investor indecision and impending volatility. Investors are a little tentative due to rising Treasury yields.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 25239 will change the minor trend to up. It will also shift momentum to the upside.

The main range is 26684 to 23088. Its 50% to 61.8% retracement zone is 24886 to 25310. This zone is acting like resistance.

The minor range is 23088 to 25239. Its retracement zone is 24164 to 23910. This zone should be considered support. Aggressive counter-trend buyers may step in on a test of this zone in an effort to form a secondary higher bottom.

Daily Technical Forecast

Based on the early price action, the direction of the Dow today is likely to be determined by trader reaction to the steep downtrending Gann angle at 24636.

A sustained move over 24636 will indicate the presence of buyers. This could drive the Dow into the 50% level at 24886.

The 50% level is a trigger point for a surge into the minor top at 25239, followed closely by the Fibonacci level at 25310. The Fib level is also the trigger point for a spike into a downtrending angle at 6791.25.

Look for the Dow to expand to the upside if 6791.25 is taken out with rising volume. This could drive the market into another downtrending Gann angle at 6919.25.

Crossing to the weak side of a downtrending Gann angle at 6535.25 will signal the presence of sellers. This could generate the downside momentum needed to challenge the short-term retracement zone at 24164 to 23910.

If 23910 is taken out with conviction then look for a possible test of 23088.