E-mini Dow Jones Industrial Average (YM) Futures Analysis – March 13, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are trading mixed shortly before the cash market opening. Supporting the Dow is the benign consumer inflation report. Limiting the market’s gains is the news that President Trump fired Secretary of State Rex Tillerson. Yesterday, the Dow was pressured by worries over a trade war.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Although the market had been rallying for six sessions, yesterday’s closing price reversal top may have stopped the counter-trend momentum.

A trade through 25535 will negate the reversal top and turn momentum to the upside. A trade through 25832 will change the trend to up.

A move through 25180 will confirm the closing price reversal top. This could fuel the start of a 2 to 3 day correction.

The main retracement zone is 24923 to 25347. The market is currently trading inside this zone.

Inside the main retracement zone is a short-term retracement zone at 25033 to 25221. This is added support.

Daily Technical Forecast

Based on the early trade, the direction of the Dow is likely to be determined by trader reaction to 25347.

A sustained move under 25347 will signal the presence of sellers. The first target is 25221. This is followed by a steep uptrending Gann angle at 25129.

If 25129 fails then look for the selling to extend into 25033, followed by 24923.

The 50% level at 24923 is the trigger point for an acceleration to the downside with the next target angles coming in at 24681 and 24458. The latter is the last potential support angle before the main bottom at 24233.

Overtaking 25347 could generate the upside momentum needed to challenge and perhaps take out 25535. This is a potential trigger point for an acceleration to 25832 over the near-term.