March E-mini Dow Jones Industrial Average futures are trading slower shortly before the cash market opening. Everyone is talking about the cash Dow hitting 20,000, but I think there are other more important concerns this week.
These concerns include the start of earnings week, the start of Senate confirmation hearings for Trump’s Cabinet appointees, and speeches by Obama and Janet Yellen. Trump is also expected to have his first press conference. If any of these things raise red flags then I think Dow investors will use them as an excuse to book profits and wait for some good news.
The main trend is up according to the daily swing chart. A trade through 19933 will signal a resumption of the uptrend. A move through 19661 will turn the main trend to down.
The short-term range is 19933 to 19661. Its 50% level or pivot is 19797. This price is controlling the short-term direction of the market.
The main range is 19001 to 19933. If there is a major sell-off then look for a possible break into its retracement zone at 19467 to 19357.
If buyers can’t sustain a rally over 19925 then look for a pullback into the short-term uptrending angle at 19821. If this fails then the short-term pivot is next at 19797. This is followed by the major long-term uptrending angle at 19737.
The angle at 19737 is the trigger point for the start of a steep break with the first target 19661. Taking out this price will change the trend to down and trigger an acceleration to the downside.