U.S. Indices In The Green, 24000 In View For DOW - Forex News by FX Leaders
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U.S. Indices In The Green, 24000 In View For DOW

Posted Wednesday, January 9, 2019 by
Shain Vernier • 1 min read

Fueled by dovish sentiment from the FED and a return of institutional money to the markets, the U.S. indices are posting a strong early 2019. Amid a U.S. government shutdown, the second-longest in recent history, stocks are in position to extend their current three-day winning streak. Subsequently, 24000 is back in view for the March E-mini DOW futures contract.

On the economic news front, today’s U.S. pre-market hours brought the release of MBA Mortgage Applications for the first week of January. The U.S. real estate market has been much-maligned in recent months, consistently featuring lagging performance. Today’s MBA stats were extremely positive coming in at 23.5%, up from the previous figure of -8.5%.  The news has been well received by the markets, with all U.S. indices in the green.

March E-mini DOW Futures

The March E-mini DOW has broken above two topside resistance levels on the daily timeframe. Price is on the bull and headed for a key 78% Fibonacci retracement level.

March E-mini DOW Futures (YM), Daily Chart
March E-mini DOW Futures (YM), Daily Chart

Here are a few areas to watch as today’s session progresses:

  • Resistance(1): 78% Current Wave Retracement, 24110
  • Resistance(2): Psyche Level, 25000
  • Support(1): Bollinger MP, 23650
  • Support(2): Daily SMA, 23556

Bottom Line: It has been a theme all week, but the pending FOMC Minutes release has the potential to turn the markets upside down. The March E-mini DOW will experience heightened volatility and either a test above 24000 or retracement to 23500.

For the remainder of the session, I will be looking to sell the 78% Current Wave Retracement from 24094. With an initial stop at 24156, this trade produces 50 ticks on a sub 1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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