E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 22, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Investors lightened up a little on the long side due to the uncertainty surrounding the U.S. government shutdown.

Later today they may get some clarity because the Senate is expected to vote on a bill to restore federal funding again, whether on a temporary basis or for longer, while trying to fix an issue over immigration. If the vote is successful, the government will reopen on Tuesday.

The key earnings reports today will come from Halliburton, Netflix, TD Ameritrade and Brown & Brown. There are no major economic releases including Fed speakers so we expect all eyes to be on Washington politics.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, the closing price reversal top formed on January 18 is helping to slow down the upside momentum.

A trade through 26149 will negate the chart pattern and signal a resumption of the uptrend.

A move through 25876 will indicate the selling is getting stronger.

The short-term range is 26149 to 25876. Its 50% level or pivot at 26012 is controlling the short-term direction of the market.

The minor range is 25222 to 26149. Its retracement zone at 25686 to 25576 is another potential downside target.

Daily Technical forecast

Based on the early price action, the direction of the index today will be determined by trader reaction to the uptrending Gann angles at 26017 and 25942.

Taking out 26017 and sustaining the move will indicate the presence of buyers. It will also mean the index is trading on the bullish side of the short-term pivot. This could generate the upside momentum needed to challenge or even take out 26149.

A sustained move under the uptrending Gann angle at 25942 will signal the presence of sellers. This could trigger an acceleration to the downside with 25876 the first target. This level is another possible trigger point for a move into 25686.