24 March 2016 – Market shows its strength

The market bulls showed its strength when the indices were pushed back up in the afternoon trading session.

Dow Transportation had a big gap down on market open and it range traded in the first hour. The buyers came in and reversed traded upward for the rest of the day and closed with a dragonfly doji candle. Pivot momentum remains upward. Daily volumetric buying pressure is at 100%.

Dow Industrial gapped down on market open and range traded in the first hour. It swung up and down in the morning session and buyers came in and took it higher in late morning session. It continued trading upward throughout the day and closed with a bullish hammer candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

Russell 2000 gapped down on market open and immediately reversed and shot upward. It traded upward throughout the day and closed with a bullish hammer candle. Pivot momentum has reversed downward. Short term volumetric buying pressure is at 99.4%.

Nasdaq 100 swung wildly up and down in the morning session. Buyers came in late morning and traded steadily upward to close with a bullish Marubozu candle below its 200 SMA. Pivot momentum remains upward. Short term volumetric buying pressure is at 100%.

S&P 500 had a big gap down on market open and traded steadily upward for the rest of the day. It closed with a bullish hammer candle above its 8 EMA. Pivot momentum remains upward. Volumetric buying pressure is at 100%. The S&P 500 is in a monthly Squeeze.

Commodities
Oil (/CL) future is trading down at $39.59 per barrel. Gold (/GC) future is trading down at 1216.7 an ounce. Silver (SLV) ETF is at 14.43. Commodities (DBC) ETF closed at 13.35.

Bonds
Junk bonds ETF (HYG) closed at 81.35. Bonds ETF (TLT) is at 129.54.

Currencies
USD/JPY is trading upward at 113.06 and is in a Squeeze. The dollar index (/DX) is up at 96.16. EUR/USD is down at 1.1160.

Relative Strength – Sectors
On a month lookback period, the ETFs outperforming the S&P 500 are XLE, XLB, XLU,, XLK, XLF and XLI respectively. XLU and XLK has moved up the ranks.

On a quarterly lookback period, the relative strength order are XLE, XLB, XLI, XLU, XLY, XLK and XLF. XLF and moved down the ranks. The utilies and technology sectors are showing growing strength.

Market Internals
Vix closed up at 14.74. Skew is up at 119.02. Market sentiment remains at neutral. Market breadth continues to slope upward but shows signs of flattening.

The week ahead
The prognosis is that the market remains strong and closed for the Easter weekend showing its strength. The market is likely to continue trading sideways and work off its overbought conditions.

To YOUR wealth!