Chart of the day

Where do we stand fundamentally?

In November 2024, E-mini Dow Jones futures (YM) showed strength alongside broader market optimism about potential Federal Reserve interest rate cuts in 2025. This optimism has supported growth in YM, mirroring trends in the Dow Jones Industrial Average, which recently exceeded 37,000. Analysts suggest that while the YM futures benefit from positive economic projections, factors like fluctuations in U.S. Treasury yields and ongoing geopolitical uncertainties may introduce volatility in the near term.

E-mini Dow Jones futures provide a smaller contract size based on the DJIA, allowing traders exposure to the movements of 30 blue-chip U.S. stocks at a reduced scale compared to standard Dow futures. As a result, YM futures are widely used by investors and traders to hedge or speculate on Dow Jones trends with greater flexibility. AAPL is included now in DJIA.

DJIA is breaking again above 42600 and is running higher in the uptrend channel. We need a sustained break here with a confirmation for the extension higher in the fifth wave. Invalidation of this immediate upside extension could come upon a break below 42100.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 37000 meaning we are in the strong bull uptrend. As said the continuation of an extension could lead to a 45500 target in the medium-term to long-term if DJIA sustains a breakout above 42600.

_{Try a long trade entry with a stop loss below 42000 to target 4400- and higher. You can trade it with options as well like in the example shown.}