E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 10, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are called lower shortly before the cash market opening. Profit-takers are using the end of the trade talks as an excuse to book profits. We could be looking at position-squaring of a speech by Fed Chair Powell at 1725 GMT, but I’m not sure he can top last week’s speech and yesterday’s Fed minutes. I think the stock market knows by now the Fed is going to be patient. Without a fresh bullish catalyst, prices may pullback into a value area.

At 1420 GMT, March E-mini Dow Jones Industrial Average futures are trading 23745, down 85.00 or -0.35%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The nearest upside target is the main top at 24860. A trade through 22563 will change the main trend to down.

The main range is 24860 to 21452. Its retracement zone at 22558 to 23156 is the nearest downside target and possible support zone. This zone is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the support cluster at 23644 to 23558.

Bullish Scenario

A sustained move over 23644 will indicate the presence of buyers. If this generates enough upside momentum then look for the index to possibly challenge yesterday’s high at 23966 and the uptrending Gann angle at 24012. Crossing to the strong side of this angle will put the index in a bullish position with the next target a downtrending Gann angle at 24252.

Bearish Scenario

A failure to hold 23644 will be the first sign of weakness. Breaking through 23587 will indicate the selling is getting stronger. However, look for an acceleration to the downside if the major Fibonacci level at 23558 fails as support. This could trigger a steep sell-off into the major 50% level at 23156, followed by a short-term uptrending Gann angle at 23075.