E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 11, 2017 Forecast

March E-mini Dow Jones industrial Average futures are trading flat shortly before the cash market opening and Trump’s first press conference since he won the election in November. No one is certain what the questions will be. Just be prepared for anything and expect volatility.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is starting to trend lower.

A trade through 19933 will signal a resumption of the uptrend. A trade through 19661 will turn the main trend to down.

The short-term range is 19933 to 19661. Its 50% level or pivot is 19797. Crossing to the weak side of this level will put the Dow in a bearish position.

The main range is 19001 to 19933. If there is a huge break to the downside then its retracement zone at 19467 to 19357 will become the primary downside target.

Forecast

Based on the current price at 19785, the direction of the market today will be determined by trader reaction to 19797.

A sustained move under 19797 will signal the presence of sellers. This could trigger an acceleration to the downside with the first target coming in at 19661. This is followed by the main 50% level at 19467.

A sustained move over 19797 will indicate the presence of buyers. This could create a labored rally because of potential resistance at 19801 and 19821. Then again at 19877 and 19885.

The rally could begin to pick up steam over 19885 with 19925 and 19933 the next upside targets.

The chart clearly shows the way of least resistance is down. If Trump is bearish today we could see a 300 point plunge.