E-mini Dow Jones Industrial Average (YM) Futures Analysis – March 20, 2017 Forecast

June E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. The chart pattern is starting to suggest the rally is losing momentum. It looks as if investors are waiting for bullish news to continue the rally. In the meantime, there is also a little nervousness which is helping to encourage some liquidation and position-squaring.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 21106 will signal a resumption of the uptrend. A move through 20742 will not change the main trend to down, but it could have the same effect with strong selling pressure.

The short-term range is 21106 to 20742. Its pivot comes in at 20924. This level is controlling the short-term direction. Currently, the Dow is trading below this level which is giving it an early downside bias.

The main range is 19654 to 21106. If there is a wash-out to the downside then its retracement zone at 20380 to 20209 will become the primary downside target.

Forecast

Based on the current price at 20856, the direction of the Dow today is likely to be determined by trader reaction to the downtrending angle at 20898.

A sustained move under 20898 will indicate the presence of sellers. This could trigger a break into a pair of angles at 20710 and 20690. Crossing to the weak side of the angle at 20690 will put the Dow in a bearish position.

Overtaking 20898 will signal the return of buyers with potential targets at 20924 and 21002. The latter is the last potential resistance angle before the 21106 main top.