29 January 2016 – A Japanese booster to the market

The market had a rocket lit underneath it when the Bank of Japan adopted negative interest rates for excess reserves placed at the bank.

Dow Transportation traded sharply upward on market open and a had a brief pause late morning before continuing on its way. It continued trading sharply upward and closed with big bullish Marubozu candle. Pivot momentum reversed upward. MPM is still showing nett selling pressure. Daily fractal support and resistance are at 6403.31 and 7013.8 respectively.

Dow Industrial shot up on market open and continued its run upward to close with a big bullish Marubozu candle above its 21 EMA. Pivot momentum remains upward. MPM is still showing nett selling pressure. Fractal support and resistance are at 15450.55 and 16593.52 respectively. The Dow Industrial is in a monthly Squeeze.

Russell 2000 shot up on market open and paused in late morning trading. It continued on its way upward in the lat two hours of trading and closed with a big bullish Marubozu candle. Pivot momentum has reversed upward. MPM is showing nett selling pressure. The index broke above fractal support at 1021.84 and closed at 1035.38. New fractal support and resistance are at 958.47 and 1160.38.

Nasdaq 100 shot up on market open and continued trading strongly upward. It broke above its fractal resistance at 4268.11 and closed at 4279.17 with a big bullish Marubozu candle. Pivot momentum has reversed upward. MPM is showing nett selling pressure. New fractal support and resistance are at 3992.91 and 4359.5 respectively.

S&P 500 shot upward on market open and continued with the upward momentum throughout the day. It broke through fractal resistance at 1908.85 and closed with with a big bullish Marubozu candle at 1940.24. Pivot momentum remains downward. MPM is showing nett selling pressure. New fractal support and resistance are at 1812.28 and 1950.33 respectively. The S&P 500 is in a monthly Squeeze.

Vix has dropped to 20.20. Oil continues to make steady gains and trading above $33 per barrel. Gold has strong buying pressure to hold steady and these two commodities are holding up the market for now.

Market sentiment is rather bullish. Market breadth is showing a positive slope upward. The indices have broken to the upside and the catalyst for the breakout was the BoJ announcement of negative interest rate. Market will remain volatile.

To YOUR wealth!