Dow Jones Index Futures

Technical Analysis Dow Jones Index Futures

Dow Jones Index on the Stock Exchange

The Dow Jones Industrial Average Index (^ DJI) is one of the oldest stock indices. It is a kind of barometer that determines the state of the "blue chips" of the American stock market.

The Dow Jones Industrial Average (DJIA) is one of the major American stock indices. For brevity, it is simply referred to as the Dow Jones Index and is the basis of a whole family of indexes.

It is published by Dow Jones & Company, Inc., a publishing and financial analytics company.

Now the Dow Jones is an indicator of the state of the US stock market, including the shares of the 30 largest companies in the country, and its name remains only as a tribute to history, since many of the modern issuers in it have long ceased to belong to the industrial sector.

Dow Jones futures are traded on the Chicago Mercantile Exchange (CME) under the ticker DJI.

Dow Jones Index History

The prototype of the index was created in 1884. Then Charles Dow and Edward Jones, economic observers of the Wall Street Journal, created an indicator for assessing the state of the American transport infrastructure, it was called the Dow Jones Transportation Average. It includes shares of 11 companies. The cost was determined not in dollars, at the start it was 50 points. At this time, it was calculated as the arithmetic average of the stock prices of twelve American industrial companies.

In 1916, the number of issuers in the index increased to 20, and in 1928 - to 30. So many of them remain to this day, however, the method of calculation has been changed - now, instead of the number of companies, the sum of stock prices in the index is divided by a special divisor, which changes in the event of a split or consolidation of securities in the calculation base. This was done in order to maintain the comparability of its values over the entire period of its existence.

There are three types of Dow Jones index futures: a mini contract with the ticker YM, a standard contract labeled ZD, and a large contract with the ticker DD. Their size is equal to the value of the underlying index multiplied by $ 5, $ 10 and $ 25, respectively.

Now the Dow Jones index includes securities of the 30 largest companies, including:

3M Co. (MMM), American Express Company (AXP), AT&T, Inc. (T), Boeing Co. (BA), Caterpillar Inc. (CAT), Chevron Corp. (CVX), Cisco Systems, Inc. (CSCO), EI DuPont de Nemours & Co. (DD), Exxon Mobil Corp. (XOM), General Electric Co. (GE), Goldman Sachs Group Inc. (GS), Intel Corporation (INTC), International Business Machines Corp. (IBM), Johnson & Johnson (JNJ), JPMorgan Chase & Co. (JPM), McDonald's Corp. (MCD), Merck & Co. Inc. (MRK), Microsoft Corporation (MSFT), Nike Inc. (NKE), Pfizer Inc. (PFE), Procter & Gamble Co. (PG), The Coca-Cola Company (KO), The Home Depot, Inc. (HD), Travelers Cos Inc (TRV), United Technologies Corp. (UTX), Unitedhealth Group, Inc. (UNH), Verizon Communications Inc. (VZ), Visa Inc (V), Wal-Mart Stores Inc. (WMT), Walt Disney Co. (DIS).

The structure of the Dow Jones 30 changes from time to time as the list of the largest US companies changes.

As for volatility, in general it grows along with quotes. If in 2013 the daily price movement averaged up to 300 points, then in 2019 it rarely dropped below 500 points, and in periods of increased volatility it went beyond 1000 points.

The industrial index is the main one in the Dow Jones family, but besides it there are several other varieties, including:

Dow Jones Industrial Average Yield Weighted - similar to the main index, weighted by the dividend yield of its constituent securities.

The Dow Jones Transportation Average (DJT) - is an index of 20 companies in the transportation industry.

The Dow Jones Composite Average (DJCA) - is a general index consisting of 65 stocks and combining the three above.

Dow Jones U.S. The Financials Index - is an index of American corporations in the finance industry.

Dow Jones U.S. The Health Care Index - is an index of stocks of companies in the US healthcare industry.

Dow Jones Global Titans 50 - is a global index that includes 50 shares of the world's largest and most famous blue chips, traded on NYSE, NASDAQ, LSE, TSE.

Dow Jones Turkey Titans 20 - is a local index calculated on the basis of the securities of the 20 largest Turkish companies.

Dow Jones Italy Titans 30 - is an index of 30 major issuers in Italy.

The Global Dow USD (GDOW) - it includes 150 blue chips from around the world.

The Dow Jones index family is very large and includes both US industry indices and local indices of other countries.

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Dear colleagues, there are significant clusters of Put option contracts worth 48M $ located at the 31000 level. I anticipate that the price will reach this level, which is our primary target. Let's look for good entry points into short positions to take advantage of this.

Dear colleagues, I anticipate that a downward movement towards the main target of 31000 will begin next week!

Elliott Wave Forecast: Near Term Rally in Dow Jones Futures (YM) Should Fail

Short term Elliott Wave view on Dow Futures suggests the decline from 8.17.2022 high is unfolding as a zigzag Elliott Wave structure. Down from 8.17.2022 high, wave A ended at 31221. Wave B corrective rally ended at 32791 with internal subdivision as an expanded Flat structure. Up from wave A, wave ((a)) ended at 32029. Wave ((b)) extended below wave A in 3 swing and ended at 30975. Index then rallied in wave ((c)) as a 5 waves impulse.

Up from wave ((b)), wave (i) ended at 31681 and pullback in wave (ii) ended at 31303. Index extended the rally higher in wave (iii) towards 32612, dips in wave (iv) ended at 32488 as triangle, and final leg higher wave (v) ended at 32791 which completed wave ((c)) of B. YM has started to turn lower in wave C. Internal subdivision of wave C should unfold in 5 waves.

Expect wave ((i)) of C to end soon with a marginal low, then Index should rally to correct cycle from 9.13.2022 high in 3, 7, or 11 swing in wave ((ii)) before turning lower again. As far as pivot at 32791 high stays intact, expect rally to fail in 3, 7, 11 swing for further downside.

Dow Futures 60 Minutes Elliott Wave Chart

Elliott Wave Forecast: Near Term Rally in Dow Jones Futures (YM) Should Fail

Elliott Wave View: Dow Futures (YM) May Pullback Soon

Short Term Elliott Wave view in Dow Futures (YM) suggest that rally from 6.17.2022 low is unfolding as a double three Elliott Wave structure. Up from 6.17.2022 low, wave W ended at 31867 and dips in wave X ended at 30109. Internal of wave X unfolded as a zigzag structure.

Wave ((a)) ended at 30331, wave ((b)) ended at 31490 and wave ((c)) lower ended at 30109. This completed wave X in higher degree. Wave Y is in progress with internal subdivision as a zigzag structure.

Up from wave X, wave (i) ended at 30726 and dips in wave (ii) ended at 30495. Index extends higher in wave (iii) towards 31264, wave (iv) ended at 31113, and final leg higher wave (v) ended at 31614 which completed wave ((a)).

Pullback in wave ((b)) ended at 30949. Wave ((c)) higher is in progress as a diagonal. Up from wave ((b)), wave (i) ended at 31980 and pullback in wave (ii) ended at 31504.

Index then extends higher towards 32193 to end wave (iii). Expect wave (iv) pullback to end soon, and Index should resume higher in wave (v) of ((c)) to end wave Y. Potential target higher is 100% – 161.8% Fibonacci extension of wave W from 6.17.2022 low. This area comes at 32321 – 33691 where sellers can appear for further downside or 3 waves pullback at least.

YM 60 Minutes Elliott Wave Chart

Well. As we can see, Mr. Powell's speech did not bring us anything new, we only received confirmation of the general expectations. The FRS will try to prevent further inflation growth, soft monetary policy will contract at a faster pace. The bet can be raised more than three times and more aggressively.

After the end of the speech, the stock markets immediately began to rise and green quickly replaced red in all US indices.

S&P 500 (index of 500 large US companies) + 0.61%
Nasdaq (US Tech Index) + 1.19%
FXCN (fund of 200 large and medium-sized companies in China) + 1.81%
Euro Stoxx 50 (index of the largest EU companies) + 0.64%
RTS (RTSI) - (index of the largest companies in Russia) + 1.93%
Coinbase (cryptocurrency exchange) + 5.58%

Let's sum up the results of yesterday.
SP500 yesterday in a slight plus thanks to the financial sector, which really pulls the index.
Tesla shares are, of course, + 10.55%. There was an excellent report on car shipments in the 4th quarter, which exceeded investor expectations. In China, the dynamics are mixed and this is an excellent signal, as it should be in a normal healthy market.
A good day!

Good morning!
The market background is neutral. US and EU futures are in positive territory. In China, only Hang Seng is traded so far, there is -0.62%, Chinese companies start the new year with a slight fall; oil and crypt in a slight plus. Today I also expect neutral dynamics, many markets are still closed.

Hello, Traders and Investors! Go For Short-Selling Trade, Dow Jones is on Bearish Trend On 22-10-2021

Technical Analysis Dow Jones Index Futures

Dow Jones : - Closing Bell Near ( 34931 ) Levels

Good afternoon, dear traders and investors!

I present to your attention the development of a trading idea for the Dow Jones stock index.

So, according to our trading recommendation for a decrease in the price from October 23, the instrument has fully worked out the short scenario:

Dow Jones Forecast - Get Your Money!

Congratulations to those who took advantage of this trading idea!

SELL Dow Jones 35580. Take Profit 34931

$$$ Profit 649 points $$$

If invested $ 1000 in this recommendation, with a leverage of 1: 100, then the profit was 6490 $
If invested $ 10 000 then the profit was 64 900 $

A very bold forecast for the fall in the Dow Jones. Very good profits are possible. But what is the reason for the expectation of a fall in this index?


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