Where next for the Dow Jones?

YM emini dailyThe question on everyone’s mind is where next for US indices, and whilst the NQ continues to rampage higher, the Dow Jones and the S&P 500 are showing less desire to rise quite so rapidly and the YM, in particular, is lacklustre and there is a technical reason for this which is the volatility signal of the 11th June. The plunge lower triggered the indicator which is a precursor signal to either congestion or a full reversal, and to date, we have been seeing congestion which is as expected with the price action remaining contained within the spread of the candle, and until the high of this candle is taken out, this is where the price action will remain.

In the last week, this level at 26,850 has been tested several times, as it was yesterday, but on each occasion has failed to hold. So the answer to the question is simple until we see a break and hold of the 27,000, the Dow Jones index is not likely to develop into a longer-term bullish trend.

By Anna Coulling

Charts from NinajTrader and indicators from Quantum Trading

About Anna 2016 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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