E-mini Dow Jones Industrial Average (YM) Futures Analysis – March 9, 2017 Forecast

June E-mini Dow Jones Industrial Average futures are called flat shortly ahead of the cash market opening. Volume and volatility could be light today as investors prepare for Friday’s U.S. Non-Farm Payrolls report and next week’s U.S. Federal Reserve monetary policy meeting.

I think the market has absorbed the March rate hike so the focus at this time is going to be on the frequency of the rate hikes in 2017. Tomorrow’s headline employment number took on more importance after yesterday’s ADP private sector jobs report. If the number blows away the estimate then the Fed may be forced to hike again in June and the stock market may not like this.

Technical Analysis

The main trend is up according to the daily swing chart. Momentum has been trending lower since the 21106 main top on March 1.

Although it’s not a main bottom, taking out 20762 could have a similar effect on traders if it is taken out with rising volume.

The main range is 19654 to 21106. If there is a prolonged sell-off then its retracement zone at 20380 to 20209 will become the primary downside target.

Forecast

Based on the current price at 20813, the first downside target is the downtrending angle at 20722. Crossing to the weak side of this angle will put the Dow in an extremely bearish position with the next target angle coming in at 20486. This is followed by the major 50% level at 20380.

On the upside, the first target is a downtrending angle at 20914. This is followed by the short-term pivot at 20934 and another downtrending angle at 21010. This is the last potential resistance angle before the 21106 main top.