Market Overview Technical Analysis Trading Tips

Dow Jones Futures (YM) Now Only 6% From All-Time Highs

  • The Dow Jones continues to diverge from the rest of the market
  • Bearish divergence has been spotted on the daily chart
  • Bull and Bear targets

YM Continues To Rally

The Dow continues to diverge from the rest of the market as it is now only 6% away from all-time highs. YM is up 10% in the past 3 months while ES is up only 2%.

With the ATH just on the horizon, what can we expect moving forward with the pending Fed announcement later today and the technicals on the chart?

The Parabolic Channels & All-Time High

The parabolic channels continue to give us decent targets to aim for, as well as support and resistance levels. The next parabolic curve is at $35300 and if history repeats itself, it could be an area Bulls may take profits. Above that, the next most significant level is the all-time high. If the markets perceive the Fed’s stance as bullish, we could easily see YM hit all-time highs in the next few days.


Looking at the RSI on the daily chart, there is clearly an initial phase of bearish divergence. This doesn’t mean we can expect a sell-off, instead, it may point toward a consolidation phase which means it’s a better option for both bears and bulls to wait it out. Unless you can adopt a range-bound strategy, there is very little point in initiating a position with the expectation of a move higher or lower when there is Divergence on the chart.

YM Daily chart showing bearish divergence and parabolic channels
YM Daily Chart

Targets Once The Fed Clears The Way

With the expectation of heightened volatility post-Fed announcement later today bears most immediate target would be $33566 which is the 0.23 Fib retracement and a small support pocket. Below that, targets would be $32573 which is the Fib 0.38 Fib retracement.

Bullish targets are ultimately at the all-time high, there is no significant level that is between the current price and the ATH.


As the market awaits the Feds announcement at 15:00 CT today, traders and investors must brace for heightened volatility over the next few days. Short-term trading strategies will likely become redundant due to the drastic shift in market conditions.