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S&P 500; US Indexes Fundamental Daily Forecast – Key E-mini Dow Pivot Price at 24164 is Controlling Price Action

James Hyerczyk

The cash market Dow Jones Industrial Average and the March E-mini Dow Jones Industrial Average futures contract posted solid gains on Monday as the blue chip market gauge rebounded from its worst weekly performance in two years.

The cash market Dow settled at 24599.07, up 408.17 or 1.69%. The March E-mini Dow finished the session at 2652.50, up 33.50 or 1.28%. At one point, the Dow cash index was up as much as 574.26.

The best-performing stocks in the Dow were DowDuPont, which gained 3.4 percent and Apple, which advanced 4 percent.

Daily March E-mini Dow Jones Industrial Average

Last week, the Dow lost 5.2 percent, its worst weekly decline since January 2016. The market also touched correction territory when its intraday low hit 10 percent from its January top.

The Dow also closed more than 1,000 points lower twice last week and rose more than 300 points in two other days.

Volatility is back so traders should continue to watch for wild swings as it tries to find a balance point. Traders are also trying to determine whether last week’s price action completed a correction, or started a bear market.

Yields continued to rise on Monday, which may have dampened gains. The current chart pattern suggests it may take another week or two to settle the market.

There were no major economic releases on Monday, but investors are looking ahead to several reports later this week, including retail sales, housing permits, and the highly important Consumer Price Index.

Traders are also looking forward to seeing President Trump’s long-awaited infrastructure plan that includes $200 billion in federal infrastructure spending over 10 years.

The technical chart pattern on the daily chart indicates the market is caught in a trading range. The short-term top is 25239 and the short-term bottom is 23088. Its 50% level or mid-point is 24164.

A sustained move over 24164 will indicate the presence of buyers, however, don’t expect a breakout to the upside unless the buying is strong enough to overtake 25239.

A sustained move under 24164 will signal the presence of sellers. 23088 is the trigger point for a possible acceleration to the downside.

This article was originally posted on FX Empire