31 March 2016 – Market awaiting for job report

It was another day of consolidation with small range trading in the indices as the market waits for the job report on Friday to give it a reason to move up further.

Dow Transportation range traded throughout the day and closed with a small doji candle above its 200 SMA. Pivot momentum remains upward. Daily volumetric buying pressure is at 92.9%.

Dow Industrial range traded for the morning session before selling off in early afternoon. It managed to recover and closed with a low closing doji candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 88.1%.

Russell 2000 traded upward in the morning session before pulling back in the afternoon session. It closed with a small spinning top doji candle. Next target is the 200 SMA. Pivot momentum remains upward. Volumetric buying pressure is at 88%.

Nasdaq 100 traded upward in the morning session before selling off in the afternoon session. It closed with a spinning top doji candle. Pivot momentum remains upward. Volumetric buying pressure is at 94.5%. The Nasdaq 100 is Squeeze.

S&P 500 grinded its way upward in the morning session and sold off in the early afternoon. It closed with a low closing spinning top doji candle. Pivot momentum remains upward. Volumetric buying pressure is at 96.3%. The S&P 500 is in a monthly Squeeze.

Commodities
Oil (/CL) futures lost ground and is trading at $38.11 per barrel. Gold (/GC) futures is trading down at 1233.0 an ounce. Silver (/SI) futures is at 15.415. Commodities (DBC) ETF closed at 13.29.

Bonds
Junk bonds ETF (HYG) is at 81.69. Bonds ETF (TLT) is at 130.61 and in a Squeeze.

Currencies
USD/JPY traded down to 112.10 and is in a Squeeze. The dollar index (/DX) is down at 94.69. EUR/USD is up at 1.1374.

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

On a quarterly lookback period, the relative strength order are XLE, XLB, XLI, XLY, XLU, XLK and XLF respectively.

Market Internals
Vix closed at 13.95. Skew is down at 122.03. Market sentiment is slightly neutral to bullish. Market breadth continues to slope up.

The week ahead
The weakening US Dollar is good for the US economy and that is a piece of good news. The Japanese Yen which has strengthened against the dollar is no good for the Japanese economy and hence the Nikkei has lost ground lately. It is also a reason for the continued strength in the US market. There is a Squeeze in the USD/JPY and hence we could see a big movement in the market if the Squeeze fires.

The market looks to be well hedged and the prognosis is that any pullback will be small. More likely, it will move sideways to upward.

To YOUR wealth!