5 December 2016 – Italian referendum, new high in Dow Industrial

The Italian referendum results caused the futures market to move lower but that was quickly reversed in the cash market. Dow Jones Industrial made new high as investors shrugged off the Italian referendum results. The Dow Jones Industrial hit 19274.85 which is an all-time. Nasda1 100 played catch-up to the other indices. Vix is back below 13 which means that there is no fear of the market selling off.

The euro briefly plunged to 20-month lows against the US dollar after the results of the Italian referendum was known, but has since regained its losses and more.

The US dollar index pulled back in a volatile trading day. In commodities, oil prices edged higher after a volatile overnight session, with Nymex crude futures gaining 0.3% to $54.95 a barrel. Brent crude, the international futures benchmark, rose 0.9% to $54.95 a barrel.

Dow Transportation made a yearly high in the first hour of trading and traded down for the rest of the day. It traded down for the rest of the day and closed with a doji candle above its moving averages. Momentum remains upward. Volumetric buying pressure is at 74.6%. The index is in a monthly Squeeze.

Dow Industrial made new all-time high at 19274.85 in the first hour of trading. It sold down in late morning trading till the end of the day and closed with a small doji candle above its moving averages. Momentum remains upward. Short term volumetric buying pressure is at 99.4%. The index is still in a monthly Squeeze.

Russell 2000 shot up in the first half hour after market open. It snoozed for most of the day and closed with a big bullish marubozu candle. Momentum is upward. Volumetric buying pressure is at 88.9%.

Nasdaq 100 gapped up on market open and traded sharply upward in the first two hours of trading. It pulled back for the rest of the day and closed with a spinning top doji candle below its 8 EMA. Volumetric buying pressure is at 76.2%. The index is in a weekly and monthly Squeeze.

S&P 500 traded sharply upward in the first hour of trading before pulling back slowly for the rest of the day. It closed with an inverted hammer candle above its moving averages. Momentum is upward. Volumetric buying pressure is at 80.3%. The index is in a monthly Squeeze.

Metals and Commodities
WTI Crude oil futures traded sideways and is trading at $51.31 per barrel. It is trading above all its moving averages.

Gold futures continued its downtrend and is trading at $1175.3 per ounce.

Silver futures made slight gain and is trading at $16.900 per ounce.

Agriculture (DBA) ETF made slight gain and is trading at 19.77.

Commodities (DBC) ETF gapped up and closed at 15.68.

Bonds
Bond futures (ZB) traded sideways and is trading at 150’25.

High Yield bond ETF (HYG) traded upward and closed at 85.60 above its 21 EMA.

Bonds ETF (TLT) traded sideways and closed at 119.47 below its moving averages. Momentum is downward.

Currencies
The dollar index pulled back below its 8 EMA and is trading at 100.110.

EUR/USD was volatile due to the Italian election and it closed higher at the end of the day with a big bullish candle at 1.07681 above its 21 EMA.

USD/JPY also painted a big candle and closed slightly higher. It is trading above its moving averages at 113.611. It is trading sideways.

Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI, XLB and XLY respectively.

On a 3-month lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI, XLB and XLY respectively.

Market Internals
Vix closed at 12.14. Vix futures is at 13.65. Skew is at 128.35. Market sentiment remains bullish. Market breadth is sloping upward again. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The market internals are showing strength again. The market continue to show resilience .

Stock of the Day
The Stock of the Day is MITK. Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers.

To YOUR wealth!

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