E-mini Dow Jones Industrial Average (YM) Futures Analysis – February 10, 2017 Forecast

March E-mini Dow Jones Industrial Average futures are expected to open higher based on the early trade. Momentum from yesterday’s surge appears to be carrying over to today’s session. Stocks were up in Asia and Europe also, leading me to believe we’re going to have a “risk on” day.

Technical Analysis

The main trend is up according to the daily swing chart. The market isn’t close to turning the trend down, but we will be looking for signs that the selling is greater than the buying.

On sign will be a break back under the previous high at 20086 and the previous main top at 20073.

Today’s session begins with the Dow in the window of time to form a potentially bearish closing price reversal top. This is essentially a higher-high, lower-close chart pattern. We’ve already had the higher-high, so the most important price level today will be yesterday’s close at 20136.

Forecast

Based on the current price at 20170 and the earlier price action, the upside momentum could drive the Dow into the uptrending angle at 20225. Crossing to the strong side of this angle will put the Dow in a bullish position.

The daily chart is open to the downside, but we’re going to need a catalyst to drive the market lower. The major target on the downside is an uptrending angle at 19969.

Watch the price action and read the order flow at 20225 today. This price will determine whether the Dow just trends higher, or accelerates to the upside.

Late in the session, watch 20136 if it is being tested. A close under this price will form a reversal top and this could lead to the start of a 2 to 3 day break if confirmed next week.