E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 23, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly before the cash market opening. Investors are still trying to assess the impact of Trump’s inauguration speech on the markets. Early thoughts are he missed the mark by suggesting trade wars and tariffs which will likely lead to slower growth. However, the market seems to be giving him the benefit of the doubt that he’ll eventually reveal his plans for increased infrastructure spending, lower taxes and more relaxed regulations in certain industries.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 19925 will turn the main trend to up. A move through 19933 will be a further indication of increased buying.

A trade through 19607 will signal a resumption of the downtrend.

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

The short-term range is 19933 to 19607. Its 50% level or pivot is 19770. This price is controlling the short-term direction of the market.

Forecast

Based on the current price at 19722 and the early price action, the direction of the Dow the rest of the session is likely to be determined by trader reaction to a downtrending angle at 19765 and the short-term pivot at 19770.

A sustained move under 19765 will signal the presence of sellers. The daily chart is open to the downside with the first target 19607. This is followed by the uptrending angle at 19513 and the major 50% level at 19467.

A sustained move over 19770 will indicate the presence of buyers. This could trigger an acceleration into a price cluster at 19845 to 19849. This is followed by a downtrending angle at 19885 and a pair of tops at 19925 and 19933.

Watch the price action and read the order flow at 19765 and 19770. Trader reaction to this area will indicate if the sellers are coming in to defend the downtrend or if buyers are retaking control.