E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 3, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open higher based on the pre-market trade. The market is currently trading on the strong side of a short-term retracement level, giving it an early upside bias.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market has been trading sideways for 10 sessions. This indicates investor indecision and impending volatility.

A trade through 24896 will signal a resumption of the uptrend. A move through 24667 will indicate the selling is getting stronger. The longer the Dow spends inside a trading range, the great the volatility on the breakout.

The short-term range is 24896 to 24667. Its 50% level or pivot is 24782. This price is controlling the near-term direction of the Dow.

The main range is 24086 to 24896. If there is a sharp sell-off then its retracement zone at 24491 to 24395 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, trader reaction to 24782 will determine the direction of the Dow today.

A sustained move over 24782 will indicate the presence of buyers. This could create enough upside momentum to take out highs at 24886 and 24896.

A sustained move under 24782 will signal the presence of sellers. This could trigger a move into a low at 24667, followed by a long-term uptrending Gann angle at 24630. This is another trigger point for an acceleration into the 50% level at 24491.