E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 17, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. Unlike the other major indexes, the Dow did not form a potentially bearish closing price reversal top on Tuesday.

Yesterday’s wild price swing is the new norm. The Dow tends to move about 1 percent a day so trading at 26000 means we have to expect 260 point moves. That could be 260 points up, 260 points down or both during the same session.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26061 will signal a resumption of the uptrend.

A move through yesterday’s low at 25682 will make 26061 a new minor top.

The minor range is 25222 to 26061. Its retracement zone at 25642 to 25542 is the first downside target.

The main range is 24086 to 26061. Its retracement zone at 25074 to 24840 is the major downside target.

Daily Technical Forecast

Based on the early trade, the direction of the Dow today will be determined by trader reaction to a pair of uptrending Gann angles at 25824 and 25750.

A sustained move over 25824 will indicate the presence of buyers. This could generate the upside momentum needed to challenge or perhaps overtake 26061.

A sustained move under 25750 will signal the presence of sellers. This could trigger a fast acceleration into the short-term retracement zone at 25642 to 25542.

The short-term Fibonacci level at 25542 is also a trigger point for a sharp break with 25074 the next likely target.