E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 20, 2017 Forecast

March E-mini Dow Jones Industrial Average future are trading slightly better shortly before the cash market opening. The market is trading inside yesterday’s range which indicates investor decision and impending volatility.

Unless aggressive counter-trend buyers came in late yesterday and earlier today, the price action should be considered short-covering.

Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Thursday when sellers took out the last swing bottom at 19661. This move confirms the double top formation at 19925 and 19933.

The new short-term range is 19933 to 19607. Its 50% level or pivot at 19770 is the primary upside target.

The main range is 19001 to 19933. If the sell-off continues then its retracement zone at 19467 to 19357 becomes the primary downside target.

Forecast

Based on the current price at 19703, the first upside target is the resistance cluster at 19770 to 19773. Look for sellers on the first test of the price cluster. This price is also the trigger point for an acceleration into the next resistance cluster at 19853.

On the downside, the first target is yesterday’s low at 19607. This is a possible trigger point for an acceleration into the uptrending angle at 19497, followed by the main 50% level at 19467.

The current chart pattern suggests to expect volatility, however, the direction cannot be determined at this time. All the charts are telling us is that first targets are 19770 – 19773 and 19497.