U.S. Indices In The Green, 24000 In View For DOW
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.
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.