E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Trader Reaction to 25156 Will Set Tone Today

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the minor pivot at 25156.
James Hyerczyk
E-mini Dow Jones Industrial Average

March E-mini Dow Jones Industrial Average futures are trading lower shortly after the opening on Thursday. The selling pressure is being fueled by concerns over a weakening global economy. Earlier today, the European Commission (EU) cut it growth outlook for the Euro Zone. The Bank of England also cut its 2019 outlook.

At 18:08 GMT, March E-mini Dow Jones Industrial Average futures are trading 25057, down 270 or -1.07%.

Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is starting to shift to the downside. On Wednesday, the Dow stopped a little short of forming a potentially bearish closing price reversal top. A trade under 24996 will turn the Dow lower for the week.

A trade through 25387 will reaffirm the uptrend. The market isn’t close to turning the main trend to down, but it is still inside the window of time for a closing price reversal top.

The minor trend is also up. A trade through 24924 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 24924 to 25387. Its 50% level or pivot is 25156.

The major retracement zone is 24890 to 24234. This zone is controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the minor pivot at 25156.

Bullish Scenario

A sustained move over 25156 will indicate the return of buyers. If this creates enough upside momentum then look for buyers to make a run at 25387. Taking out this level will signal a resumption of the uptrend. This would put the market back on course for an eventual test of the main top at 26110.

Bearish Scenario

A sustained move under 25156 will signal that the selling pressure is getting stronger. If this move creates enough downside momentum then watch for a potential acceleration into the minor bottom at 24924, followed closely by the major Fibonacci level at 24890.

The Fib level at 24890 is also a potential trigger point for an acceleration into the major 50% level at 24234.

Please let us know what you think in the comments below. 

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