Dow Jones Futures Forecast January 21, 2013, Technical Analysis

The Dow Jones futures market initially dipped during the Friday session, but bounced enough to form a small hammer just above the 13,600 level. This looks like a market that ready to break out, and as a result we are more than willing to start buying on a break of the highs from the Thursday candle. In this move, we would expect that the buyers will be targeting the 14,000 area based upon longer-term chart. As far as selling is concerned, we have very little interest in doing so as we see quite a bit of support at the 13,500 level and would look at any pullback as a potential buying opportunity.