E-mini Dow Jones Industrial Average (YM) Futures Analysis – January 31, 2018 Forecast

March E-mini Dow Jones Industrial Average futures are called higher based on the pre-market trade. The Dow received a boost late Tuesday when President Trump said he would ask Congress for $1.5 trillion for infrastructure spending.

Early Wednesday, investors will get the opportunity to react to a slew of economic data before the release of the U.S. Federal Reserve’s monetary policy statement and interest rate decision at 1900 GMT.

Stocks have been sensitive to rising Treasury yields this week so we could get a reaction in the market if the Fed drops hints on the timing and the number of rate hikes in 2018 as well as its opinion on inflation.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, upside momentum has slowed since the formation of a daily closing price reversal top on Monday, January 29.

A trade through 26684 will negate the chart pattern and trigger a resumption of the uptrend.

A move through 26005 will indicate the selling is getting stronger.

The short-term range is 25876 to 26684. Its 50% level or pivot is 26280. This price is controlling the direction of the Dow today.

The next minor range is 25222 to 26684. Its retracement zone at 25953 to 25780 is the first support.

The main range is 24086 to 26684. If 25078 fails as support then look for the selling to extend into its retracement zone at 25385 to 25078.

Daily Technical Forecast

Based on the early price action, the direction of the Dow the rest of the session will be determined by trader reaction to the pivot at 26280.

A sustained move over 26280 will indicate the presence of buyers. This could trigger a move into a cluster of potential resistance angles at 26390, 26428 and 26465.

Overtaking 26465 will indicate the buying is getting stronger. This could lead to a further rally into a series of downtrending Gann angles at 26556, 26620 and 26652. The latter is the last potential resistance angle before the 26684 main top.

A sustained move under 26280 will signal the presence of sellers. The daily chart is wide open under this angle so if the selling volume increases then look for a break into the retracement zone at 25953 to 25780.

The Fibonacci level at 25780 is the trigger point for another acceleration into 25385.