DowJones - Are we poised for a move higher

It was a strong day for US equities on Friday and we could be on course for a breakout.  Financial stocks led the way after bullish job market data gave rise to expectations that the economic recovery is back on track and that interest rates may rise sooner than previously thought.  I must add that we do need a follow through at the beginning of next week to confirm this move however.



The last couple of week's sideways price action and period of low volatility could result in a bollinger band squeeze which means that we could be install for some much more aggressive price action ahead.  Key supports are 15650, 15520 and then a break of these 14800 would be back in play.   Upside targets are 138.2% Fibb projection of the Dec12-May13 rally gives us a target of 17430 and top of the channel around the 16250/16300 area to watch out for.

Charts sourced from ig.com