E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 19, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Today looks like another mixed session. I don’t think investors are going to take new positions ahead of Friday’s inauguration so if there is a rally, it is likely to be fueled by short-covering.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. If the selling pressure increases today then investors are likely to go after the main bottom at 19661. A trade through this bottom will change the main trend to down. This could trigger an acceleration to the downside.

The short-term range is 19661 to 19925. Its 50% level or pivot is 19797. Look for a downside bias as long as the market remains under this level. It is controlling the short-term direction of the market.

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

Forecast

Based on the current price at 19714, the nearest upside targets are 19781 and 19797. Overtaking 19797 could drive the Dow into another resistance cluster at 19857 and 19893.

On the downside, the main target is 19661. Taking out this level will change the main trend to down and could trigger an acceleration into 19481 and 19467 over the near-term.

Be careful selling weakness and buying strength because of the expected light volume.