15 April 2015 – Gains held for the week

The week ended with the market doing nothing much for the day but it held the gains for the week. It is also an ominous sign with another day of doji candles. Oil held above $40 per barrel. Gold futures made slow gains and held above $1200 per ounce and the dollar index fell.

Retailers continue to underperform and energy held its perch since oil moved from its low of $26+ to above $40. Pharmaceuticals remain under appreciated in this election year with politicians threatening action against price gouging.

Dow Transportation range traded within a 69.56 points throughout the day. It closed with a small doji candle above its 3EMA. Pivot momentum remains upward. Daily volumetric buying pressure is at 57.9%.

Dow Industrial traded up in the morning session before trading downward. It managed to pull back in the afternoon session and closed with a small doji candle above its 3EMA. Pivot momentum remains upward. Short term volumetric buying pressure is at 81.5%.

Russell 2000 traded upward and through its 200 SMA but was unable to hold it. It closed with a samll doji candle above its 3 EMA. Pivot momentum is upward. Volumetric buying pressure is at 100%.

Nasdaq 100 swung up and down and up during the day’s trading and closed with a small spinning top doji candle on its 3EMA. Pivot momentum remains upward. Volumetric buying pressure is at 89.9%. The Nasdaq 100 is in a monthly Squeeze.

S&P 500 swung up and down in the day’s trading and closed with a small doji candle on its 3 EMA. Pivot momentum remains upward. Volumetric buying pressure is at 100%. The S&P 500 is in a daily and monthly Squeeze.

Commodities
Oil (/CL) futures closed for the week at $41.75 per barrel. Gold (/GC) futures closed at 1235.8 an ounce. Silver (/SI) futures is at 16.255. Commodities (DBC) ETF closed up at 13.56.

Bonds
Junk bonds ETF (HYG) is at 82.49. Bonds ETF (TLT) is down at 131.88.

Currencies
USD/JPY traded up at 108.74. EUR/USD is at 1.1281. The dollar index (/DX) is at 94.670.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLV, XLE, XLF, XLB, XLY and XLI respectively. Healthcare and Financials moved up the ranking ladder.

On a 3-month lookback, the relative strength order are XLE, XLB, XLI, XLY, XLF, XLK and XLU respectively. Financials made gains while technology lost out.

Market Internals
Vix is down at 13.62. Vix futures is at 14.725. Skew is at 123.10. Market sentiment remains bullish. Market breadth continue to slope up. Volumetric accumulation/distribution is sloping up as well.

The Week Ahead
This market closed with the week undecided but market internals points to continuing strength. There is no major rotation of any sectors. Healthcare and financial sectors are showing some interests among buyers. These are sectors that have been sold down from the beginning of the year.

The market has made significant advance since the sell-off and this recovery has been solid with good volume support. Our prognosis is that the market should see more sideways action and any move upwards will be limited.

To YOUR wealth!