DAX Index Daily Price Forecast – DAX To Trade Positive On Healthy Risk Appetite

European markets on Friday closed on positive note supported by risk appetite in the equity market and better than expected EURO CPI data. Investor sentiment turned positive as all major geopolitical events that could cause serious changes to market were done with and the week ahead was filled with high impact macro data as market returned back to normal. German equity market opened positive on Friday but price action saw sharp loss owing to worse than expected German macro data. However, DAX index managed to close with a slight positive bias on last trading session of the week. Overall market performance in Frankfurt exchange was also positively supported by cues from the international market.

Asian Equities Trade Steady Amid Holiday Thin Market

Out of total 778 stocks trading in Frankfurt stock exchange, 391 stocks closed in green while 70 closed unchanged at end of the day. As per data of sectoral indices performance from the exchange, stocks from F&B, Construction and Basic resource sectors saw a high level of gains and helped market close positive while stocks from software and financial services sectors saw sharp declines pulling the market down from intra-day highs. All three major indices DAX, MDAX & TECDAX closed in green with 0.07%, 0.30% & 2.75% increase in value as trading session came to close for the day. Price action in the Asian equity market was relatively subdued as China & Singapore markets are closed today.

Other major stocks and indices in Asia traded in green since trading session opened for the week as risk appetite is high ahead of macro data filled week. Positive investor sentiment was further underpinned by positive cues from US Wall Street which closed in Green last Friday backed up upbeat US NFP data and ISM manufacturing data. The German equity market is highly influenced by price action in Wall Street and likely to open positive on cues from Asian and U.S. equity markets. Further DAX index trading in the international market was up by 0.30% ahead of German market opening. This suggests that the DAX index is expected to open positive and trade with steady bullish bias across the day. Given lack of major macro data updates in EURO area, Frankfurt exchange is likely to see bullish price action across the day on risk appetite in the broad market.

S&P 500 Weekly Price Forecast – stock markets continue to grind higher

The S&P 500 initially pulled back during the week, reaching down towards the 2625 level, showing signs of support again. What’s even more interesting is that the previous week formed a hammer off the 2600 level, and of course we found the support just above there. This tells me that the market is ready to continue to grind to the upside, unleashing even more inertia to the upside again. With the Federal Reserve on the sidelines, it makes quite a bit of sense that perhaps talks get a bit of a boost as a loose Federal Reserve helps the markets in general.

S&P 500 Video 04.02.19

Although this has been in a massive move to the upside, we still haven’t taken back all of the losses from the beginning of December. The bearish case is that we have not seen volume picked up to the upside, and that of course shows a bit of concern for the buyers. Ultimately, I think that the market is walking the proverbial “wall of worry.” The question now is whether or not we get above 2800? I don’t think we do anytime soon, and the fact that we show bullish pressure doesn’t necessarily mean that we have enough to get past that massive area.

That being the case, I believe that the next few weeks should be bullish, but I also recognize that there is still a major battle to be fought at the 2800 level. I think that this lends itself to be bullish but noisy couple of weeks, meaning that longer-term investors are going to be a bit perplexed. For the longer-term investor, 2800 is going to be the key. We are not in an environment conducive to buying and holding right now.

S&P 500 Price Forecast – stock markets rally after strong jobs number

The S&P 500 pulled back slightly during the trading session on Friday, reaching down towards the 2700 level. However, we have bounced from there as the 200 day EMA looks to be offering support. This is a very positive turn of events and I think that the market is going to go looking towards the 2800 level above. With that being the case, I like the idea of buying short-term dips, but would not get married to a position. Expect to see a lot of twists and turns, showing extreme volatility.

S&P 500 Video 04.02.19

At this point, I suspect that value hunters will continue to flood to the market based upon the Federal Reserve, and of course the overall trend that we have seen as of late. The markets will of course continue to be noisy, but that’s nothing new with this type of choppiness and volatility. I think that headline risk including the US/China trade situation will probably dominate the market, and of course the government shutdown that could be happening in just a few short weeks. With the jobs number looking as strong as it has though, I do think that we will continue to look at pullbacks as potential buying opportunities. Ultimately, I believe that we are looking at a situation of “buy on the dips” going forward. I have no interest in shorting this market unless something drastically changes fundamentally. That being the case, cautious optimism remains the way I see the S&P 500.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – February 1, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading lower shortly before the cash market opening. Traders seem to be ignoring the stronger-than-expected headline payrolls number and are instead focusing on the weakness in Amazon stock, a major component of the index.

Amazon reported better-than-expected earnings and revenue for the fourth quarter, however, the company issued weaker-than-expected revenue guidance for the first quarter and warned about increasing investments. These concerns pushed Amazon shares down by 4.3 percent, CNBC reported.

At 14:20 GMT, March NASDAQ-100 Index futures are trading 6875.75, down 39.00 or -0.58%.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6943.00 will reaffirm the uptrend. The trend will change to down on a trade through 6592.25.

The minor trend is also up. A trade through 6616.75 will change the minor trend to down. This will also shift momentum to the downside.

The market is currently trading inside a major retracement zone at 6792.75 to 7022.25. This zone is controlling the longer-term direction of the index.

The intermediate retracement zone at 6653.75 to 6494.75 is support.

Daily Swing Chart Technical Forecast

Currently, the March E-mini NASDAQ-100 Index is trading inside yesterday’s range. This indicate investor indecision and impending volatility. The direction of the index today is likely to be determined by trader reaction to 6943.00 and 6839.25.

Bullish Scenario

A sustained move over 6943.00 will indicate the presence of buyers. This could trigger a surge into the major Fibonacci level at 7022.25. This is a potential trigger point for an acceleration to the upside with the main top at 7169.00 the next target.

Bearish Scenario

A sustained move under 6839.25 will signal the presence of sellers. The first target is the major 50% level at 6792.75. This price is a potential trigger point for an acceleration into the intermediate Fibonacci level at 6653.75.

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – February 1, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are crawling higher shortly before the cash market and after the release of a mixed U.S. Non-Farm Payrolls report for January. Ahead of the report some traders thought the numbers could have been distorted by the 35 day government shutdown.

The headline number showed the economy added 304,000 jobs in January, well above the 165,000 forecast. December’s number was revised down from 312,000 to 222,000. November’s rose from 176,000 to 196,000. The three-month average is 241,000.

The unemployment rate unexpectedly rose from 3.9 percent to 4.0 percent. Wage growth, however, was the most disappointing news. Average hourly earnings rose just 3 cents on the month, or 0.1 percent, well below the 0.3 percent expected gain.

At 13:57 GMT, March E-mini Dow Jones Industrial Average futures are at 25045, up 69 or +0.28%.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when the market traded through Wednesday’s high at 25068. If the upside momentum continues then look for a possible test of the minor top at 25125.

The minor top at 251.25 is a potential trigger point for an acceleration to the upside since the daily chart indicates there is no resistance until 26110.

The minor trend is also up. A trade through 24284 will change the minor trend to down. This will shift momentum to the downside.

The main range is 26110 to 21452. Its retracement zone at 24890 to 24234 is controlling the direction of the Dow futures contract. Holding above this zone will indicate an upside bias. Traders should treat this zone as support.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential acceleration to the upside over 25125. The daily chart indicates the market has room to run over this level.

Bearish Scenario

A sustained move under 24890 will signal the presence of sellers. Increased selling pressure could drive the market into a cluster of levels at 24284, 24234 and 24216.

E-mini S&P 500 Index (ES) Futures Technical Analysis – February 1, 2019 Forecast

March E-mini S&P 500 Index futures are trading slightly lower shortly before the cash market opening. Volume is below average for this time of day and the market is trading inside yesterday’s range which suggest investor indecision and impending volatility.

Traders are waiting for the release of the U.S. Non-Farm Payrolls report at 13:30 GMT. The report is expected to show the U.S. economy added 165K jobs in January. The unemployment rate is expected to remain at 3.9% and average hourly earnings are expected to show a rise of 0.3%. Some are suggesting the data may have been distorted by the 35 day partial government shutdown.

At 13:11 GMT, March E-mini S&P 500 Index futures are trading 2697.75, down 6.75 or -0.25%.

Stocks could actually rally if the numbers are weak since this would confirm the dovish message from the Fed presented earlier this week.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2713.00 will signal a resumption of the uptrend. A move through 2612.50 will change the main trend to down.

The minor trend is also up. A move through 2622.25 will change the minor trend to down. This will shift momentum to the downside.

The major retracement zone is 2636.00 to 2711.50. This zone is controlling the longer-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action and yesterday’s high, the direction of the March E-mini S&P 500 Index on Friday is likely to be determined by trader reaction to 2713.00 to 2711.50.

Bullish Scenario

A sustained move over 2713.00 will indicate the presence of buyers. This could be the trigger point for an acceleration to the upside since the daily chart indicates there is plenty of room to the upside with 2819.00 the next major target.

Bearish Scenario

A sustained move under 2711.50 will signal the presence of sellers. If this create enough downside momentum then look for a possible spike into the main 50% level at 2636.00.

Taking out 2736.00 will indicate the selling is getting stronger with the next targets the minor bottom at 2622.25 and the main bottom at 2612.50.

Basically, strengthens over 2713.00, weakens under 2711.50.

DAX Index Daily Price Forecast – Dax To Trade Range Bound on Subdued Risk Appetite

European equity markets saw mixed performance yesterday despite prevalent risk appetite as investors were cautious ahead of Sino-U.S. trade talk’s outcome. Further, bearish sentiment saw a spike owing to bearish tone visible in EURO area macro data. While German equity markets opened positive during yesterday’s European market hours, disappointing macro data updates from Eurozone and cautious investor sentiment ultimately resulted in all gains made from earlier session being erased near the end of session and major indices closing in the red. Out of total 778 stocks trading in Frankfurt stock exchange, 371 stocks closed in green while 79 closed unchanged at end of trading session.

Headlines Paint Dovish Outlook For European Markets

As per sector indices data from Frankfurt stock exchange, despite most major stocks trading in the green losses from Chemicals, Construction, and Insurance sector resulted in DAX index losing most of the gains made earlier in the day. All three major German indices were in red at the close of trading session with DAX, MDAX and TECDAX down by 0.08%, 0.70% & 0.16% on the day. Further a delay in Sino-U.S. trade deal despite progress in trade talks with key issues being addressed and headlines which hint at possible EU-U.S. trade talks scheduled later this month also likely to go south investor risk appetite is highly subdued in the broad market today.  While US Wall Street closed in green, disappointing Chinese Caixin Manufacturing PMI data influenced dovish sentiment in Asian markets.

This resulted in major indices and equities in major Asian markets seeing mixed price action. The optimism of progress helped Chinese indices close in green while Japan’s NIKKEI 225, Hong Kong’s HANG SENG & Singapore’s FTSE STI closed in the red. Further mixed cues are expected to influence subdued price action in the European market. DAX futures trading in the international market ahead of Frankfurt market opening was up by 0.32% on the day. This suggests that DAX is likely to see range-bound price action with neutral bias as subdued risk appetite in broad market and cues from international market suggest that there is little possibility for a sharp move in either direction. However disappointing Euro area CPI  data is likely to push DAX index on bears path.

Stocks Boosted by Jump in Shares of Facebook, GE but Gains Limited by Microsoft, Dupont’s Mixed Earnings Results

The major U.S. stock indexes closed mixed on Thursday, finishing their strongest performance to start a new year in 30 years. Gains were driven by the dovish U.S. Federal Reserve and a slew of strong earnings reports. The Fed left its benchmark interest rate unchanged on Wednesday, while signaling it would be “patient” before making its next rate hike. A surge in shares of Facebook in reaction to blow-out earnings led the indexes higher with help from shares of GE after the company posted stronger-than-forecast revenue.

In the cash market, the benchmark S&P 500 Index settled at 2704.10, up 23.05 or +0.87%. The blue chip Dow Jones Industrial Average finished at 24999.67, down 15.19 or -0.06% and the tech-based NASDAQ Composite closed at 7281.74, up 98.66 or +1.41%.

For the month, the S&P 500 Index rallied 7.87 percent, its best January performance since 1987, and its largest monthly gain since October 2015. The Dow posted a 7.17 percent gain, its biggest one-month performance since 2015 and largest January gain in 30 years.

With the Fed decisions history and earnings season winding down, the focus shifted back to U.S.-China trade relations. Near the end of the trading session, the markets received a boost after President Trump told reporters in the Oval Office he hoped to strike a deal with China before the March 1 deadline. According to CNBC, a translator also presented Trump with an optimistic letter from Chinese President Xi Jinping.

Shares of Facebook surged 10.8 percent after the company’s quarterly results easily topped expectations. GE shares jumped 11.65 percent on stronger-than-forecast revenue. These two stocks seemingly carried the markets higher on Thursday even with a 1.8 percent drop in Microsoft. The tech giant reported weaker-than-expected revenue and earnings guidance that was lower than expected.

Another Dow stock, DowDuPont was pressured enough to close 9.2 percent lower. This came on the back of mixed quarterly results. Shares of Tesla lost 0.5 percent with sellers driven by weaker-than-expected earnings. The company also announced the resignation of its CFO.

S&P 500 Price Forecast – stock markets break out

The S&P 500 pulled back slightly during the trading session on Thursday, but then turned around to slice slightly through the 2700 level. At this point, it’s very likely that we will be paying attention to the jobs number during the day, so I would not read too much into this other than the market has the liberty to break out. At this point, I look at short-term pullbacks as buying opportunities, and perhaps some type of negativity due to the jobs figure may be exactly what we need.

S&P 500 Video 01.02.19

The 20 day EMA is getting ready to cross above the 50 day EMA, so that’s a bullish sign, but if we break above the 2700 level, and can stick that move, I believe we will then go looking towards the 2800 level above. Now that we are decidedly above the 61.8% Fibonacci retracement level, it looks as if we will continue to go to the 100% Fibonacci retracement level, which is at roughly 2820. Ultimately, I don’t have any interest in shorting this market until we turn around and break below the 2600 level, something that obviously will take a massive move. I like the idea of buying short-term pullbacks but I would not get too excited about hanging onto that trade for longer-term, I think volatility will continue to be a major issue in this market as we have a lot of concerns when it comes to the US/China relations, the jobs number, the Federal Reserve, and whole host of other issues.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 31, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher shortly before the cash market opening. A dovish Fed may be underpinning the index, but the pre-market surge is likely being fueled by a strong performance in shares of Facebook, which gained after the company released better-than-expected earnings after the close on Wednesday. After the closing bell, Amazon will release its fourth-quarter earnings results.

At 12:57 GMT, March E-mini NASDAQ-100 Index futures are trading 6873.75, up 36.50 or +0.53%.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Wednesday when buyers took out the previous main top at 6828.25. Taking out this top with conviction could trigger a further rally into the next main top at 6897.00. This is followed by the next main top at 7169.00. A trade through 6592.25 will change the main trend to down.

The minor trend is also up. A trade through 6616.75 will change the minor trend to down. This will shift momentum to the downside.

The index is currently trading inside a major retracement zone at 6792.75 to 7022.25. This zone is controlling the longer-term direction of the index.

Additional support is the retracement zone at 6653.75 to 6494.75.

Daily Swing Chart Technical Forecast

Based on yesterday’s close and the early price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the major 50% level at 6792.75.

Bullish Scenario

A sustained move over 6792.75 will indicate the presence of buyers. If this move can create enough upside momentum then look for buyers to take a run at the next main top at 6897.00. Taking out this top will reaffirm the uptrend. This could trigger a surge into the major Fibonacci level at 7022.25.

Bearish Scenario

A sustained move under 6792.75 will signal the presence of sellers. If sellers come in strong then look for a possible spike into the short-term Fibonacci level at 6653.75.

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 31, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading flat shortly before the cash market opening. The market is currently trading inside yesterday’s range which indicates investor indecision and impending volatility. This price action suggests yesterday’s reaction to the dovish Fed news may have been overdone, or investors are taking to the sidelines ahead of several key earnings reports. The major report is from Amazon after the close. We could also be looking at position-squaring ahead of the final day of trade talks between the United States and China and Friday’s U.S. Non-Farm Payrolls report.

At 12:06 GMT, March E-mini Dow Jones Industrial Average futures are trading 24927, down 41 or -0.16%.

Yesterday, the market surged to its highest level since December 7. The cash market Dow closed above 25,000 for the first time since December 7.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Wednesday when buyers took out the previous main top at 24860. The next main top comes in at 26110. The nearest main bottom is at 22563.

The minor trend is also up. A trade through 24284 will change the minor trend to down. This will also shift momentum to the downside. This is followed closely by the next minor bottom at 24216.

The index is currently trading inside a major retracement zone at 24234 to 24890. This zone is controlling the longer-term direction of the index. A sustained move over this zone will give the Dow a strong upside bias.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini Dow Jones Industrial Average the rest of the session is likely to be determined by trader reaction to the major Fibonacci level at 24890.

Bullish Scenario

A sustained move over 24890 will indicate the presence of buyers. The next target will be the minor top at 25125. This is a potential trigger point for an acceleration to the upside with 26110 the next major target.

Bearish Scenario

A sustained move under 24890 will signal the presence of sellers. The daily chart indicates there is room to the downside with the first support target the minor bottom at 24284, followed closely by the main 50% level at 24234 and the next minor bottom at 24216.

E-mini S&P 500 Index (ES) Futures Technical Analysis – January 31, 2019 Forecast

March E-mini S&P 500 Index futures are trading flat during the pre-market session. Concerns over U.S.-China trade relations and position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report may be limiting gains. Traders could also be waiting for the release of several key earnings reports including General Electric, MasterCard, UPS, Blackstone, Hershey and Sprint. After the bell, Amazon and Yum China will report.

At 11:10 GMT, March E-mini S&P 500 Index futures are trading 2683.00, up 0.50 or +0.02%.

Yesterday, the market surged to its highest level since December 12 on the back of a dovish U.S. Federal Reserve.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the previous main top at 2690.50. The main trend will change to down on a trade through 2612.50.

The minor trend is also up. A trade through 2622.25 will change the minor trend to down. This will also shift momentum to the downside.

The index is currently trading inside a major retracement zone at 2636.00 to 2711.50. This zone is controlling the longer-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to yesterday’s close at 2682.50.

Bullish Scenario

A sustained move over 2682.50 will indicate the presence of buyers. If this can create enough upside momentum then look for buyers to take a run at the main Fibonacci level at 2711.50. Look for a technical bounce on the first test of this level, but if buyers can take it out then look for an acceleration to the upside. If this move can create enough upside momentum to pull away from 2711.50 then look for a potential rally to 2819.00 over the near-term.

Bearish Scenario

A sustained move under 2682.50 will signal the presence of sellers. If the selling pressure increases then look for a potential spike into the 50% level at 2636.00. Look for a technical bounce on the first test of this level. If it fails then look for sellers to go after the minor bottom at 2622.25, followed by the main bottom at 2612.50. Taking out this level will change the main trend to down.

DAX Index Daily Price Forecast – Dax To Trade Positive Supported By Increased Risk Appetite In Market

European markets yesterday saw positive price action in most of its major markets. Compared to cautious trading activity at the start of the week, performance in the equity market showed increased risk-on trading activity. Post outcome of UK Parliament update, other major events were US FOMC update and Sino-U.S. trade talks. Investors had a general idea on the outlook of both events and this helped improve risk appetite in European markets during yesterday’s market hours. However dovish cues from international market and mixed outcome in German macro data pressure German equity markets into bearish price action.

Sino-U.S. Trade Talk Outcome Has Greater Sway Over Price Action in German Equity Market

At the close of yesterday’s trading session, Frankfurt stock exchange saw mixed outcome in major indices. Out of total 778 stocks trading in the exchange, at the close of trading session, 371 stocks closed in green while 112 stocks closed unchanged for the day. Of three major indices in Frankfurt stock exchange, DAX and TECDAX closed in red down by 0.33% & 1.54% on the day while MDAX index closed with 0.65% increase in value. According to sectoral indices data obtained from the Frankfurt stock exchange, stocks from Chemicals, Industrials and Consumer & Cyclical sector saw high level of gains during yesterday’s market hours.

Fed’s decision to take a patient wait and watch approach towards rate hike plans for 2019 and comments on the possibility for reduction in interest rates helped improve investor sentiment in Wall Street giving major indices and shares a bullish boost. Cues from Wall Street and hopes for a positive outcome in Sino-U.S. trade talks helped all major Asian indices trade positive today. DAX futures trading in the international market was also up by nearly 0.60% ahead of Frankfurt market opening. A combination of improved investor sentiment with healthy risk appetite and positive cues from international equity markets are expected to help DAX open positive and establish a steady bull run erasing most of the losses incurred earlier this week.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Weekly Chart Indicates Next Upside Target 7022.25

Technology stocks are trading higher this week on the back of strong earnings from Apple, AMD and Facebook. Tech stocks are being further boosted by the dovish U.S. Federal Reserve, which left interest rates unchanged on Wednesday. The move was highly expected, but the central bank also preached the importance of “patience” in its decision to raise rates throughout the year. Later this week, traders will get the opportunity to react to an earnings report from Amazon.

At 05:04 GMT, March E-mini NASDAQ-100 Index futures are trading 6871.50, up 34.25 or +0.50%.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 5820.50 the week-ending December 28.

The main trend will change to up on a trade through 7169.00. A move through 5820.50 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The index is up 5 weeks from its last main bottom. Typically, we start looking for a potentially bearish closing price reversal top after 7 to 10 weeks.

The main range is 7765.00 to 5820.50. The index is currently trading inside its retracement zone at 6792.75 to 7022.25. This zone is controlling the longer-term direction of the index.

Weekly Technical Forecast

Based on this week’s price action and the current price at 6871.50, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the main 50% level at 6792.75.

Bullish Scenario

A sustained move over 6792.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into the main Fibonacci level at 7022.25.

Overcoming 7022.25 will indicate the buying is getting stronger with the next target angle coming in at 7100.50. Crossing to the strong side of this angle will put the index in a bullish position with the next targets coming in at 7169.00 and 7221.00.

Bearish Scenario

A failure to hold above 6792.75 and a sustained move below this level will signal the return of sellers. This could drive the index into a downtrending Gann angle at 6677.00. Crossing to the weak side of this angle will put the index in a bearish position with the next target angle coming in at 6460.50.

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – Holding Above 24890 Will Indicate Strong Buying

The benchmark Dow Jones Industrial Average posted a solid gain on Wednesday, driven higher by a dovish Fed which signaled it would be “patient” with future rate hikes. This greenlit the rally in the stock market with the Dow closing above 25,000 for the first time since December 4. There could be further upside action since futures traders are pricing in no rate hikes this year. The focus for traders will now shift to U.S.-trade talks.

At 04:35 GMT, March E-mini Dow Jones Industrial Average futures are trading 25008, up 40 or +0.16%.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at 21452 during the week-ending December 28.

The main trend will change to up on a trade through 26110. A trade through 21452 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The main range is 27015 to 21452. Its retracement zone at 24890 to 24234 is controlling the longer-term direction of the Dow. Closing above this zone will give the market an upside bias.

The Dow is now up five weeks from its last main bottom. Typically, this type of rallies forms a closing price reversal top after a 7 to 10 week rally. So time is indicating there is still room to the upside.

Weekly Technical Forecast

Based on this week’s price action and the current price at 25008, the direction of the March E-mini Dow Jones Industrial Average the rest of the week is likely to be determined by trader reaction to the downtrending Gann angle at 25086.

Bullish Scenario

Taking out 25086 and sustaining the rally will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target angle coming in at 25598. We could see a technical bounce on the first test of this angle, but if it fails then look for the rally to possibly extend into the next major downtrending Gann angle at 25927. This is followed by the main top at 26110.

Bearish Scenario

The inability to overcome or sustain a rally over 25086 will signal the presence of sellers. This could trigger a quick pullback into 24890 and a downtrending Gann angle at 24839.

Crossing to the weak side of the downtrending Gann angle at 24839 will indicate the selling is getting stronger with the next major downside targets coming in at 24234 and 24012.

For bullish traders, essentially, we’d like to see the March E-mini Dow Jones Industrial Average futures contract sustain a rally on the bullish side of the main retracement zone at 24890 to 24234.

E-mini S&P 500 Index (ES) Futures Technical Analysis – Potential Weekly Chart Breakout Over 2711.50

March E-mini S&P 500 Index futures surged on the daily chart on Wednesday, putting the index in a position to breakout to the upside on the weekly chart. Overcoming the next target will mean the index has recovered more than 62% of its break from its late September top to its late December bottom.

At 04:05 GMT, March E-mini S&P 500 Index futures are trading 2691.25, up 8.75 or +0.33%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Weekly Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum has been trending higher since the formation of the closing price reversal bottom at 2316.75 the week-ending December 28.

The main trend will change to up on a trade through 2955.50. A trade through 2316.75 will negate the closing price reversal bottom and signal a resumption of the uptrend. The swing chart also indicates we have about 2 to 5 weeks before we can start looking for a closing price reversal top.

The minor trend is also down. A move through 2819.00 will change the minor trend to up. This will also confirm the shift in momentum to the upside. This top is followed by another minor top at 2824.50.

The main range is 2955.50 to 2316.75. The index is currently trading inside its retracement zone at 2636.00 to 2711.50. This zone is controlling the longer-term direction of the index.

Weekly Technical Forecast

Based on this week’s price action and the current price at 2691.25, the direction of the market the rest of the week will be determined by trader reaction to the Fibonacci level at 2711.50.

Bullish Scenario

Taking out 2711.50 and sustaining the rally will indicate the buying is getting stronger. If this move can create enough upside momentum then look for a surge into the next downtrending Gann angle at 2803.50.

Bearish Scenario

The inability to overcome 2711.50 will signal the return of sellers. If the selling is strong enough then look for a potential pullback into a cluster of support targets at 2651.50, 2636.75 and 2636.00.

Watch for aggressive counter-trend buyers to defend the rally on a pullback into 2636.75 to 2636.00.

The only danger for the bullish traders at this time is a massive failure at 2636.00. Taking out this level could trigger the start of a steep break.

S&P 500 Price Forecast – stock markets waiting for a bigger move

The S&P 500 has rallied slightly during the trading session on Wednesday as we await the Federal Reserve press conference. The downtrend line that I have drawn on the chart is somewhat important, but I do think that the biggest thing coming into play in this market right now is the moving averages underneath offering support, and of course the idea of consolidation. If we can break above the 2700 level, the market could go much higher, reaching towards the 2800 level. Obviously, there is the alternate scenario, such as if we break down below the 2600 level. We do, then the market probably goes down to the 2500 level.

S&P 500 Video 31.01.19

Overall, I think once we get some type of impulsive daily candle stick that either breaks above the 2700 level, or below the 2600 level, we can then start to follow the market and go much higher. In general, I do think that being in the middle of earnings season has a lot to do with why things are so difficult to trade, and then on top of that we have the jobs number coming out on Friday.

Ultimately, I think we are at a major inflection point, it will be interesting to see this plays out. By waiting on a daily close, you can assure yourself that the market will prove itself in intention to you and, which of course is probably the best thing that you can ask for in this type of trading environment.

E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – January 30, 2019 Forecast

March E-mini NASDAQ-100 Index futures are trading higher, helped by a strong performance by Apple. The tech giant is trading nearly five-percent higher after reporting a quarterly profit that barely beat estimates. According to its quarterly report, the company’s overall quarterly revenue topped expectations, but iPhone sales for the quarter came in below estimates. Earlier in the month, the company slashed its revenue guidance due to the economic slowdown in China.

At 15:13 GMT, March E-mini NASDAQ-100 Index futures are trading 6705.25, up 66.50 or 1.00%.

E-mini NASDAQ-100 Index
Daily March E-mini NASDAQ-100 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 6828.25 will signal a resumption of the uptrend. The main trend changes to down on a trade through 6521.50.

The main range is 6521.50 to 6828.25. Its 50% level or pivot at 6674.75 is support.

The short-term range is 6828.25 to 6592.25. Its 50% level or pivot at 6710.25 is resistance.

Both pivot levels are potential trigger points for breakouts.

On the upside, the major 50% level comes in at 6792.75.

Daily Technical Forecast

Based on the current price at 6705.25 and the earlier price action, the direction of the March E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 6697.50.

Bullish Scenario

A sustained move over 6697.50 will indicate the presence of buyers. The first target is the short-term 50% level at 6710.25. This is followed by a downtrending Gann angle at 6716.25.

The Gann angle at 6716.25 is the trigger point for an acceleration to the upside. The daily chart indicates there is plenty of room to the upside with the first target angle coming in at 6772.25. This is followed by the main 50% level at 6792.75, and a pair of downtrending Gann angles at 6800.25 and 6814.25. The latter is the last potential resistance angle before the 6810.50 minor top and the 6828.25 main top.

Bearish Scenario

A sustained move under 6697.50 will signal the presence of sellers. This could trigger a break into the 50% level at 6674.75.

The 50% level at 6674.75 is the trigger point for an acceleration to the downside with the next target angle coming in at 6609.50.

E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – January 30, 2019 Forecast

March E-mini Dow Jones Industrial Average futures are trading sharply higher shortly after the cash market open. The catalyst behind the rally is strong earnings from Boeing and Apple. Boeing shares jumped 6.2 percent after its quarterly earnings easily beat expectations. Apple climbed 4.7 percent after reporting a quarterly profit that barely beat estimates.

At 14:54 GMT, March E-mini Dow Jones Industrial Average futures are trading 24784, up 231 or +0.94%.

E-mini Dow Jones Industrial Average
Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 24860 will signal a resumption of the uptrend. The next major main top comes in at 26110.

The minor trend is also up. A trade through 24284 will change the minor trend to down. This will also shift momentum to the downside with the next minor bottom coming in at 24216.

The main retracement zone is 24234 to 24890. This zone is controlling the near-term direction of the market.

Daily Technical Forecast

Based on the early price action and the current price at 24784, the direction of the March E-mini Dow Jones Industrial Average is likely to be determined by trader reaction to the uptrending Gann angle at 24739.

Bullish Scenario

A sustained move over 24739 will indicate the presence of buyers. The first target is the resistance cluster at 24890 to 24894. We could see a technical bounce on the first test of this area. Taking out 24894, however, could trigger an acceleration to the upside. The daily chart indicates the next potential target is a downtrending Gann angle at 25502.

Bearish Scenario

A sustained move under 24739 will signal the presence of sellers. If this move creates enough downside momentum then look for a possible break into the next uptrending Gann angle at 24396. Since the trend is up, look for buyers to show up on a test of this angle. If it fails then look for the selling to extend into the main 50% level at 24234.

E-mini S&P 500 Index (ES) Futures Technical Analysis – January 30, 2019 Forecast

March E-mini S&P 500 Index futures are expected to open higher based on the pre-market trade. The index is trading higher on the back of strong earnings reports earlier today. Investors are also looking for the U.S. Federal Reserve to come out dovish when it leaves its benchmark interest rate unchanged later in the day.

At 1317 GMT, March E-mini S&P 500 Index futures are trading 2653.75, up 13.50 or +0.51%.

E-mini S&P 500 Index
Daily March E-mini S&P 500 Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 2677.75 will signal a resumption of the uptrend. This will also make 2612.50 a new main bottom.

The minor trend is also up. A trade through 2672.50 will signal a resumption of the minor trend. A trade through 2612.50 will change the minor trend to down. This will also shift momentum to the downside with the next target the minor bottom at 2596.50.

The major retracement zone is 2636.00 to 2711.50. This zone is controlling the longer-term direction of the index.

If the minor trend changes to down then its retracement zone at 2558.00 to 2530.00 will become the primary downside target.

Daily Technical Forecast

Based on the current price at 2753.75 and the earlier price action, the direction of the March E-mini S&P 500 Index the rest of the session is likely to be determined by trader reaction to the major 50% level at 2636.00.

Bullish Scenario

A sustained move over 2636.00 will indicate the presence of buyers. If this creates enough upside momentum then look for a rally into the downtrending Gann angle at 2667.00. Overtaking this angle will indicate the buying is getting stronger with the next targets the minor top at 2672.50 and the main top at 2677.75.

Taking out 2677.75 will signal a resumption of the uptrend, while overtaking an uptrending Gann angle at 2684.00 will put the index in a bullish position.

Bearish Scenario

A sustained move under 2636.00 will signal the presence of sellers. The daily chart is wide open under this level until 2612.50 so watch for a potential acceleration to the downside. The next target is a minor bottom at 2596.50, followed by an uptrending Gann angle at 2574.50.