Dow Jones Futures now above psychological 13500

day trader
YM Daily Chart 21 Jan 2013

With the VIX heading lower on Friday it was no surprise to see the YM continue its recent bullish momentum with the index ending the March futures contract at 13576, and building on Thursday’s wide spread up bar which finally breached the 13500 price point.

Just as Friday’s action on the VIX was seminal, it was Thursday’s price action on the daily YM chart that was equally significant as the March contract finally broke through the sustained level of price resistance just below 13500 created during the extended sideways consolidation of September and October 2012.

This consolidation phase was clearly defined by 4 isolated pivot highs but with this platform of support now in place expect to see further bullish moment for the YM in due course.  This sentiment is also mirrored in the various indicators with buying volumes on both the daily and three day charts remaining firm and fully supported by bullish trends in both time frames.

The heatmap too has also now transitioned to reflect this bullish sentiment and with the technical picture now looking strong expect to see the market push on higher and on to test the 14000 level in the longer term.

By Anna Coulling

About Anna 1040 Articles

Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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