E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 18, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are called higher shortly before the cash market opening and after the release of the U.S. consumer inflation data that came in as expected. After the release of a few more reports, traders are going to shift their focus on Fed Chair Janet Yellen’s speech on monetary policy and perhaps look ahead to Trump’s economic plans.

Technical Analysis

The main trend is up according to the daily swing chart. Momentum shifted to the downside with the formation of the secondary lower top at 19925. The main trend will turn down on a trade through the last main bottom at 19661.

The short-term range is 19933 to 19661. Its 50% level or pivot is 19797. This price is controlling the short-term direction of the market.

The main range is 19001 to 19933. Its retracement zone at 19467 to 19357 is the primary downside target.

Forecast

Based on the current price at 19782, the direction of the Dow is likely to be determined by trader reaction to 19789 and 19797.

A sustained move under 19789 will indicate the presence of sellers. This could lead to downside pressure with 19692 and 19661 the first two targets. The daily chart opens up to the downside under 19661 with the next target a support cluster at 19467.

Overtaking 19797 will signal the presence of buyers. This could generate enough upside momentum to challenge the resistance cluster at 19861 to 19869. This is followed by another downtrending angle at 19897. This is the last potential resistance angle before the 19925 and 19933 main tops.