Emini S&P March futures came close to strong support at 6740/6730 but finished just above it, missing a buying chance. They then rallied past targets, hitting 6965 and forming a bullish engulfing candle. This hints at the possibility of new highs, although there’s still some consolidation under 7043.
Emini Nasdaq March futures touched strong support at 24200/24000, narrowly avoiding a buy point. Nonetheless, a bullish engulfing candle appeared, showing optimism. The first resistance levels are at 25230/25250, with a buy signal expected above 25390, aiming for levels up to 26000 while staying above 25800.
Emini Dow Jones March futures surpassed 50000, closing at a weekly high, indicating possible further gains towards 50500/50600. Strong support lies at 49900/49800. Falling below this could lead to consolidation. Overall, this performance shows strong market control, steering clear of sideways action.
We’re seeing strong signs of bullish momentum, especially with the bullish engulfing candles on the S&P and Nasdaq futures charts. Buyer activity ahead of major support levels last week shows a readiness to push prices higher. This strength aligns with recent economic data. The January jobs report revealed a healthy 215,000 jobs added, while unemployment remained low at 3.6%.
For derivative traders, continuing to buy on dips is still a solid strategy, but entry points might need a more aggressive approach. The dismissal of the “AI bubble” narrative is supported by strong earnings from Q4 2025, particularly in tech due to real AI-related spending. A clear break above notable resistance, like 25390 on the Nasdaq, should be taken as a signal for buying call options or futures.
The Dow Jones reaching a new all-time high above 50,000 confirms broader market strength. This upward trend is supported by a strong economic basis, with last year’s Q4 GDP revised to a solid 2.9% growth rate. As long as the Dow stays above key support like 49900/49800, pullbacks should be seen as opportunities to buy.
Following the recent rally, the VIX has dropped to about 13.5, marking a low not seen since late 2025, making options more affordable. This situation could favor strategies like buying call debit spreads to target higher levels, as selling puts is less appealing. Traders should keep an eye out for a breakout above the consolidation high of 7043 on the S&P to confirm the next upward phase.
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