4 February 2016 – Squeezes in the indices

It was a day of small price range but active buying and selling in the indices. The indices are in their daily and monthly Squeezes with increasing buying pressure.

Dow Transportation shot up on market open as it equalizes itself with the futures market on market open. It traded sharply upward in the first hour and half before range trading for the most part of the day. Further buying came in the latter part of the day before it closed with a bullish Marubozu candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%. It close above previous daily fractal resistance and the new fractal support and resistance are at 6644.17 and 7652.8 respectively. The index is in a daily Squeeze.

Dow Industrial shot up sharply on market open as it continued trading upward for the first hour and half. It pulled back and range traded for the rest of the day and closed with small spinning top doji candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%. Fractal support and resistance are at 15863.72 and 16510.98 respectively. The Dow Industrial is in a daily and monthly Squeeze.

Russell 2000 shot up sharply on market open and continued trading upward in the first hour of trading. It subsequently sold off and managed to recover towards the end of the day to close with a small inverted hammer. Pivot momentum remains downward. Short term volumetric buying pressure is at 25.48% which means weak buyingpressure. Fractal support and resistance are at 958.47 and 1037.27. The index is in a daily Squeeze.

Nasdaq 100 shot up sharply in the first hour and half of trading before pulling back. It then range traded for the rest of the day and closed with a small doji candle. Pivot momentum remains downward. Short term volumetric buying pressure is at 76.59% which means increasing volume is coming into the buy side. Fractal support and resistance are at 4111.93 and 4301.63 respectively. The index is in a daily and monthly Squeeze.

S&P 500 shot up sharply on market open in the first hour and half before pulling back. It range traded for the rest of the day and closed with a small doji candle. Pivot momentum remains downward. Volumetric buying pressure is at 98.58% which means a strong buying pressure. Fractal support and resistance are at 1872.7 and 1947.2 respectively. The S&P 500 is in a monthly Squeeze.

Vix remains at 21.84. Oil pulled back slightly and is now trading at $31.72 per barrel. Gold is trading at 1156.3 an ounce and continues to show strong volumetric buying pressure at 100%. With the exception of the Russell 2000, the rest of the indices are in Squeeze either in their daily or monthly charts or both.

Market sentiment remains bullish. Market breadth has turned upward. The indices are grinding upward and in their daily and monthly Squeezes. The prognosis is that the indices are grinding upward and with the strong volumetric buying pressure, we expect the indices to exit their Squeezes to the upside.

To YOUR wealth!

Note: We are using ViCS trading system to do our daily market analysis from here on. It is our latest research and development and we now introduced volume into our analysis on the price action.