E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 3, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the cash market opening on Thursday. The selling is being fueled by a steep drop in shares of Apple.

At 1533 GMT, the E-mini Dow is trading 22738, down 591 or -2.53%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom on December 26. A trade through 23417 will indicate the upside momentum is getting stronger. A move through 21452 will signal a resumption of the downtrend.

The minor trend is also down. A trade through 23417 will change the minor trend to up. This will confirm the shift in momentum to the upside.

The main range is 24860 to 21452. Its retracement zone at 23156 to 23558 is acting like resistance. Trading below this zone is helping to generate a downside bias today.

The minor range is 21452 to 23417. Its 50% level or pivot comes in at 22435. This is followed by a major 50% level at 22151.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the downtrending Gann angle at 23068.

Bullish Scenario

Overtaking and sustaining a rally over 23068 will indicate the return of buyers. This could trigger a quick move into the 50% level at 23156. This is a potential trigger point for an acceleration into the minor top at 23417, followed by a resistance cluster at 23558. Since the main trend is down, sellers are likely to come in on a test of this cluster.

Bearish Scenario

A sustained move under 23068 will signal the presence of sellers. The first target angle comes in at 22732. Counter-trend buyers could come in on the first test of this angle, but if it fails then look for a potential acceleration to the downside with the next target the 50% level at 22435.

If 22435 fails as support then look for the selling to extend into the support cluster at 22151 to 22092.