E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 18, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open steady based on the pre-market trade. The range was tight and volume was low during the early session. Dow futures reached a record high early Thursday, but there wasn’t much of a follow-through to the upside. Investors may be worried about a possible government shutdown.

Daily Technical Analysis

The main trend is up according to the daily swing chart. Based on the higher-high earlier in the session, traders will have to watch yesterday’s close at 26098 all session. Taking out this level will be a sign that the selling is greater than the buying at current price levels. It will also put the Dow in a position to form a potentially bearish closing price reversal top.

A trade through 26149 will signal a resumption of the uptrend. A move through 26098 will indicate the presence of sellers.

The minor range is 25222 to 26149. Its retracement zone is 25686 to 25576. If there is a sell-off then this zone will become the first downside target. Since the main trend is up, buyers may come in on a test of this area.

Daily Technical Forecast

The Dow is still being supported by a pair of uptrending Gann angles. The long-term uptrending angle is at 25889. The short-term angle is at 25814. These angles are very important to the structure of the rally. If they fail to hold as support then we could increasing selling pressure.

If 25814 fails as support, for instance, we could see a steep break into 25686.

Even before the angles are reached, investors should watch the price action and read the order flow at 26098 all session. A close below this level will form a closing price reversal top. This is often the first sign of increasing selling pressure.