E-mini Dow Jones Industrial Average (YM) Futures Analysis – March 19, 2018 Forecast

June E-mini Dow Jones Industrial Average futures are expected to open sharply lower. The price action is being driven by political concerns, an expected Fed rate hike, uncertainty over future rate hikes and possible trade wars.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending lower since the formation of a closing price reversal top at 25535 on March 12.

A trade through 25535 will change the main trend to up. A move through 24233 will reaffirm the downtrend.

The market has been trading sideways the last four sessions, mostly in reaction to a series of retracement levels ranging from 25033 to 24730. Trader reaction to this zone will likely set the tone for the day.

The main retracement zone at 24932 to 25347 is controlling the longer-term direction of the market.

On the downside, the primary target is 24477 to 24157.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the Dow today is likely to be determined by trader reaction to 24730.

A sustained move over 24730 will indicate the presence of buyers. This could lead to a labored rally with potential resistance levels coming in at 24884, 24932 and 25033.

The rally could expand over 25033 with upside targets coming in at 25221, 25347 and 25535.

The trigger point for an acceleration to the downside is 24730. Taking out this level could lead to a break into 24477. This is another trigger point for a steep break into 24233, followed by 24157.

The Dow could collapse if 24157 is taken out with conviction.