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E-mini Dow Jones Industrial Average (YM) Futures Analysis – Dow Posts Solid Gains on Optimism Over Tax Reform

James Hyerczyk
Updated

March E-mini Dow Jones Industrial Average futures posted a solid gain on Friday as investors shrugged off early concerns about tax reform only to be rewarded later in the session with news that the long-awaited bill to cut corporate tax rates looked like it would win enough support from lawmakers to pass.

The futures contract posted both a record high and record close, settling at 24677, up 120.00 or +0.49%.

The intraday surge in the Dow was fueled when Senators Marco Rubio and Bob Corker, who had criticized the proposal, signaled support for the bill in the late afternoon.

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

Daily Technical Analysis

The E-mini Dow poked through the previous closing price reversal top at 24703, reaching a high of 24708, but the rally stalled there with most of the speculative money moving into the NASDAQ Composite which posted a 1.40% gain.

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The main trend is up and very strong. This means the rally is likely to continue over the near-term. The nearest swing bottom is 24086. A trade through this level will change the main trend to down.

E-mini Dow Jones Industrial Average (Close-Up)
Daily March E-mini Dow Jones Industrial Average (Close-Up)

The Dow is also trading on the strong side of a major uptrending Gann angle. This angle provided support and guidance on Friday at 24545, which was approximately the low for the session.

Although the trend is up, the market could face some headwinds over the federal deficit and government funding, but lately it has proven to be resilient, shrugging off a missile test in North Korea, a terror attack in New York, and tax reform issues. This serves as proof that it is going to take a major event to derail the current rally.

 

This article was originally posted on FX Empire

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