Remember the words from the song, ‘Everybody laughed at Christopher Columbus when he said the world was round’, the same sentiment could apply to my last post on the US markets where I suggested the Dow Jones and the YM Emini future by implication were likely to approach the 30,000 level in due course!
Notwithstanding the current appalling Coronavirus epidemic which continues to dominate the headlines and creating nervous tension in the markets, this target remains in sight with yesterday’s price action providing a solid injection of momentum. More importantly, it was the reversal in intraday sentiment which set the tone as the cash markets opened, and this has followed through into today’s price action and helping to push the index higher.
What is also helping is the price action of the associated Nasdaq and S & P500 which both remain extremely bullish and show no signs of any slowing in this sentiment, and with both performing strongly and looking set to continue, this should help to drag their lacklustre cousin higher along with them. And with a low volume node ahead, this should be relatively straightforward.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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