E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 16, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are trading higher shortly before the cash market opening. The Dow hit a new contract higher earlier in the session. This signaled a resumption of the uptrend.

Given the prolonged move up in terms of price and time, the only thing investors have to worry about is a closing price reversal top. This means the focus today should be on yesterday’s close at 25937.

Traders will be safe playing the long side today as long as the Dow can sustain the rally over 25937.

A break under 25937 will indicate the presence of sellers. A close under this price will indicate a shift in momentum to the downside.

The Dow is also trading on the strong side of a pair of steep uptrending Gann angles at 25827 and 25750. As long as the market holds above these angles, it should continue to move higher at a rate of about 64 points per day.

The uptrend will start to weaken on a sustained move under these Gann angles. Even then, it won’t mean the trend is turning down. It will only indicate the momentum is shifting to the downside. It’s going to take a lot more than crossing to the weak side of a pair of Gann angles to disrupt this powerful uptrend.

Keep in mind that the higher the Dow moves, the greater the daily ranges. Markets typically move about one-percent a day so with prices at 26,000, we can expect to see 260 point days. This is why it is getting easier for the Dow to move in 1000 point increments rather quickly.