E-mini Dow Jones Industrial Average (YM) Futures Analysis – Strong Over 26387, Weak Under 26087

March E-mini Dow Jones Industrial Average futures finished higher on Wednesday, but not before posting a wicked two-sided trade and nearly forming a potentially bearish closing price reversal top.

Additionally, the higher the market, the greater the chances of increased volatility. This is because the Dow tends to produce one-percent ranges. Trading at 26000 means we can expect to see 260 point price swings.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 26387 will signal a resumption of the uptrend.

Wednesday’s price action made 26387 a new minor top.

Although taking out 26387 will signal a resumption of the uptrend, taking out this level then moving below yesterday’s close at 26270 will put the Dow in a position to form a closing price reversal top.

Taking out 26387 then moving below yesterday’s low at 26087 will change the minor trend to down. Another minor bottom comes in at 25876.

The main range is 24086 to 26387. If there is a minor correction then we can expect to see a move into its retracement zone at 25237 to 24965.

 Daily Technical Forecast

The market continues to be driven by momentum. Since the first of the year, all of the momentum has been to the upside. Yesterday’s price action suggests that momentum may be getting ready to shift to the downside.

Basically, a sustained move through 26387 will signal the presence of buyers, while a move through 26087 will signal the emergence of sellers.