E-mini Dow Jones Industrial Average (YM) Futures Analysis – March 24, 2017 Forecast

The June E-mini Dow Jones Industrial Average futures market is trading higher shortly after the opening. Volume is a little light as investors await the House’s vote on the American Health Care Act.

There are many doubts today about whether or not it will pass the House. Some traders are predicting major problems for the stock markets if the bill doesn’t get approved. President Trump said if it doesn’t pass, he’ll move on to tax reform.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower.

The short-term range is 21106 to 20525. Its 50% level or pivot is at 20816. Holding below this level is helping to give the market its current downside bias.

The main range is 19654 to 21106. Its retracement zone at 20380 to 20209 is the primary downside target.

Forecast

The direction of the Dow futures contract today is likely to be determined by trader reaction to the downtrending angle at 20562.

Holding above the angle at 20562 will indicate the presence of buyers. If there is bullish news then we could see a spike to the upside with a cluster of numbers at 20816, 20834 and 20838. This area is a potential upside target. The angle at 20838 is also the trigger point for an acceleration to the upside. If this occurs then the next target is the downtrending angle at 20970. This is the last potential resistance angle before the 21106 main top.

Crossing back under the downtrending angle at 20562 will signal the presence of sellers. This could lead to a quick move into this week’s low at 20525. If the selling is strong enough to take out this minor bottom then look for an acceleration to the downside with potential targets a 50% level at 20380, an uptrending angle at 20246 and a Fibonacci level at 20209.

The next downside target under 20209 is an uptrending angle at 19950. This is the last potential support angle before the 19654 main bottom.