E-mini Dow Jones Industrial Average (YM) Futures Analysis –Hasn’t Had Two-Day Break Since Early December
March E-mini Dow Jones Industrial Average futures closed sharply higher on Friday, led by solid quarterly estimates. U.S. Gross Domestic Product came in lower than the estimate for the fourth quarter, but the 2.6% increase was still seen as a positive for stock market investors.
The Dow futures contract settled at 26604, up 228.00 or +0.86%.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart. There is no resistance at this time, however, the market is in the window of time for a closing price reversal top. This chart pattern is not likely to lead to a change in trend, but it could trigger a 2 to 3 day retracement, designed to alleviate some of the excessive upside pressure.
The daily chart shows that the index has not had a 2-day break from a high since before the December 7 bottom at 24086. That’s one strong uptrend.
The minor trend will change to down on a move through 26087. This is followed by another minor swing bottom at 25876. This could be the trigger point for an acceleration into another minor swing bottom at 25222.
The main range is 24086 to 26608. Its retracement zone is 25347 to 25049.
The first minor range is 26087 to 26608. Its 50% level or pivot is 26347.
The second minor range is 25876 to 26608. Its 50% level or pivot is 26242.
The third minor range is 25222 to 26608. Its 50% level or pivot is 25915 to 25751.
Daily Swing Chart Forecast
A trade through 26608 will signal a resumption of the uptrend.
Taking out 26608 then breaking back below 26604 will signal the presence of sellers. Closing below 26604 will form a potentially bearish closing price reversal top.
The inability to follow-through to the upside will also indicate the presence of sellers. This could trigger a labored break with the first two targets 26347 and 26242. The latter is a possible trigger point for an acceleration into 25915 to 25751.
This article was originally posted on FX Empire