11 March 2016 – Market continues its upward climb

The market was trading sideways and with the ECB announcement of more money printing, it brought in the bulls. Add in the previous week good job report, the market has turned bullish. On the global front, the South American economy is in a near depression state. China market looks to be stabilising and we could even see a turnaround in the Shanghai Stock Index. It closed at 2810.31 on Friday and it needs to climb above 3000 to show that it is back in business.

Dow Transportation climbed in pre-market trading and continued trading upward from market open. It closed with a bullish Marubozu candle within a morning star pattern above its 50 SMA which is pointing downward. Pivot momentum remains upward. Daily volumetric buying pressure is at 100% which means that the market has moved upward with volume support.

On the weekly chart, it closed with a bullish hammer candle next to a bullish candle. Next target is the weekly 50 SMA. It is now trading at 17.3% below its peak. Weekly volumetric buying pressure is at 100%.

Dow Industrial had a big move upward during pre-market hours. It grind its way upward during market hours and closed with a bullish Marubozu candle above its 200 SMA. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a bullish hammer candle above the previous week bullish candle just below its 50 SMA. It closed at 6.2% below its peak. The Dow Industrial is in its monthly Squeeze.

Russell 2000 had a big move pre-market and continued trading upward till the end of the day. It closed with a big bullish Marubozu candle above its 50 SMA with the next target being the 200 SMA. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a big bullish candle above its weekly 200 SMA and on its 21 EMA. Next target is the 50 SMA. It closed at 16.2% below its peak.

Nasdaq 100 sold off in the first hour after market open and then reversed upward. It staggered its way upward to close with a bullish Marubozu candl. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

On the weekly chart, it closed with a bullish hammer candle above the previous week’s high. Next target is the weekly 50 SMA. It is now trading at 8.2% below its peak.

S&P 500 had a big move upward pre-market and it is also the start of the new futures contract. It continued trading upward throughout the day and closed with a bullish Marubozu candle above its 200 SMA. Pivot momentum remains upward. The volumetric buying pressure is at 100%. The S&P 500 is in a monthly Squeeze.

On the weekly chart, it closed with a bullish candle above its previous week’s high. Next target is the weekly 50 SMA. It is now trading at 5.7% below its peak which was at 2134.72.

Vix closed down at 16.50 as the market moves upward. Skew remains at 128.99.

Oil (/CL) futures gained and is at $38.49 per barrel. Gold (/GC) futures is down at 1251.1 an ounce. Silver (SLV) ETF is at 14.72. Oil continues to trend upward which has helped the market move upward.

Junk bonds ETF (HYG) gapped upward to close at 82.14. Bonds ETF (TLT) is down at 127.36. Biotech (IBB) ETFs is up at 261.94. Semiconductor ETF (SOXL) made small gain and closed at 24.98.

The USD/JPY is remains at 113.794.

The week ahead
Market sentiment continues to be bullish after the ECB announcement of more money printing. Market breadth continues to slope upward.

The prognosis is that the market remains strong with volumetric support. Market sentiment and market breadth continue to show bullish intent. The market is moving upward with volume supporting it.

To YOUR wealth!