16 February 2016 – Market continues its upward grind

The market upward grind continues as the bulls buy into oversold conditions. News of potential agreement to oil production cuts by Saudi Arabia and Russia helped to drive oil prices higher which brought the market up with it.

Dow Transportation had a gap up on market open and sold off in the first half hour. The buyers came in and it traded upward for the rest of the day to close with a small bullish candle in a trend continuation candle pattern. Pivot momentum is upward. Short term volumetric buying pressure is at 100%. It has broken out of its previous resistance are at 7100.31. New support and resistance are at respectively 6792.32 and 7652.8 The index has exited its daily Squeeze.

Dow Industrial gapped up on market open and range traded for the first hour. Buyers came in late morning and it continued trading upward for the rest of the day to close with a small bullish Marubozu candle. Pivot momentum has reversed upward. Short term volumetric buying pressure is at 100%. Fractal support and resistance are at 15503.01 and 16201.89 respectively. The Dow Industrial is in a daily and monthly Squeezes.

Russell 2000 had a gap up on market open and continued trading upward for the rest of the day. It closed with a bullish Marubozu candle and broken out of its previous resistance at 983.45. Pivot momentum has reversed upward. Short term volumetric buying pressure is at 48.51%. Fractal support and resistance is at 943.1 and 1037.27.

Nasdaq 100 gapped up on market open and then sold off in the two hour hours of trading. Buyers came in late morning and traded upward for the rest of the day to close with a hammer candle. Pivot momentum has reversed upward. Short term volumetric buying pressure is at 99.22%. Fractal support and resistance has changed to 3888.78 and 4301.63 as it has broken out of its previous resistance at 4045.48.

S&P 500 gapped up on market open and range traded for the first two hours of trading. Buyers came in late morning and it traded upward for the rest of the day to close with a bullish Marubozu candle. Pivot momentum remains upward. The volumetric buying pressure is at 98.98%. New fractal support and resistance are at 1810.1 and 1947.2 and it has broken out of its previous resistance at 1881.6. The S&P 500 is in a daily and monthly Squeezes.

Vix has dropped to 24.11 as the S&P 500 rises.

Oil (/CL) futures rallied to over $30 per barrel but has since dropped back to $29.11 per barrel. Gold (/GC) futures sold off to 1209.5 an ounce from its overbought condition. Silver (SLV) ETF lost some ground to 14.51 as gold sold off.

Junk bonds (HYG) bounced and closed at 76.79. Bonds ETF (TLT) weakened as equity market gained to close at 130.11. Semiconductor (SOXL) ETF made gains and closed at 18.18. Biotech (IBB) ETFs made gains as well and closed at 258.72.

The USD/JPY is trading sideways at about 113.72. EUR/USD gained some and is trading at about 1.1168.

Market sentiment is bullish. Market breadth is sloping slightly upward. The indices continue to trade upward in anticipation of oil production cuts and oil price stabilisation. The USD/JPY has stabilised and that has help the equity market make some ground.

The prognosis is that the market continues to be volatile with potential quick reversal. The indices could be facing resistance at the round numbers. S&P 500 is near the 1900 round numbers and some selling could happen.

To YOUR wealth!