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E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Close Under 28482 Will Be First Sign of Short-Term Top

Based on the current price at 28561, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at 28482.
James Hyerczyk
E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are grinding higher on Monday shortly after the cash-market opening on the back of a strong performance in shares of Boeing, a major component of the Dow.

Although the overall volume is extremely weak because of the holiday-shortened Christmas week, the rally is real because of the Boeing news. Shares of Boeing jumped more than 2% after the company fired CEO Denis Muilenburg amid the 737 Max crisis. The company has been struggling to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max.

At 20:36 GMT, March E-mini Dow Jones Industrial Average futures are trading 28561, up 78 or +0.27%.

Stocks were boosted during the pre-market session after China said starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out Friday’s high at 28526. However, the rally stalled at 28583 as the volume dried up.

A trade through the intraday high at 28583 will indicate the buying is getting stronger. The main trend changes to down on a move through 27297. This is highly unlikely, however, the March E-mini Dow Jones Industrial Average futures contract is inside the window of time for a closing price reversal top.

This chart pattern won’t change the trend to down, but it will indicate the selling is greater than the buying at current price levels. If confirmed, it could trigger the start of a 2 to 3 day correction.

The minor trend is also up. A trade through 27715 will change the minor trend to down. This will also shift momentum to the downside.

Daily Technical Forecast

Based on the current price at 28561, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at 28482.

Bullish Scenario

A sustained move over 28482 will indicate the presence of buyers. If this move creates enough upside momentum then look for buyers to make a run at 28583.

Bearish Scenario

A sustained move under 28482 will signal the presence of sellers. This will put the Dow in a position to form a closing price reversal top. A trade through Friday’s low will indicate the selling is getting stronger. This could trigger a further break into the uptrending Gann angle at 28291.

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