E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 23, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are trading slightly higher shortly before the cash market opening. Volume and volatility have been very light during the pre-market session. The market is still being driven by momentum and there is no true resistance so we’re going to have to continue to monitor the chart pattern. The most dominant pattern has been the higher-high, higher-close so a higher-high, lower-close will likely indicate the selling is greater-than-the-buying at current price levels.

Technical Analysis

The main trend is up according to the daily swing chart. There is no upside target and the market is not in a position to change the trend to down. It is, however, in a position to post a potentially bearish closing price reversal top. Therefore, the key level to watch today will be yesterday’s close at 20749.

Forecast

If the market is still being driven by up upside momentum then we should see the rally continue on a sustained move over yesterday’s high at 20769. We’ve already taken out this level so a break back below it will be the first sign of weakness. A sustained move under yesterday’s close at 20749 will indicate the selling is getting stronger. It will also put the market in a position to post a closing price reversal top.

The final level to watch is the uptrending angle at 20737. If this angle begins to fail then look for the start of a sell-off. The daily chart is wide open to the downside with the next target angle coming in at 20225 today. We’re not likely to hit this angle today, but we may in the future since it is moving up at a rate of 32 points per day.

We’re going to extend the rally today, or form a reversal top. If there is enough selling pressure, we may even see the start of a sell-off.