10 January 2020 – Weekly Review – All Time high and pull back
Indices (Weekly chart) Dow Transportation ($DJT) closed at 10973.88 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 309.59. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Weak Upward. RSI – 57.2. The index is in its monthly Squeeze.
Dow Industrial ($DJI) closed at 28823.77 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 590.44. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising. Medium CycleWave – positive and rising. Short cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. It is in a monthly Squeeze. RSI – 71.5.
Russell 2000 closed at 1657.6433 with a spinning top doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 26.32. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short Cycle Wave – positive and falling slope. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 63.4.
Nasdaq 100 closed at 8966.6362 with a bullish marubozu candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 310.98. Fractal Chaos Band – Above its FCB upper and lower band. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 78.4.
S&P 500 closed at 3234.85 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 46.11. Fractal Chaos Band – Above its FCB Upperband. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 73.6.
Metals and Commodities (Weekly charts) WTI Crude oil futures (CL) closed at $59.12 per barrel with a big bearish candle below its 8 EMA and above its 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 6.99. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short cycle – positive and falling slope. Market direction:- Strong UpTrend. Momentum – Weak Upwards. RSI – 52.4.
Gold futures (GC) closed at 1563.2 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 72.3. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising slope. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 70.1.
Bonds (Weekly charts) Bond futures (/ZB) closed at 157’22 with a bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Weekly trading range was 3.6875. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – negative and flat. Short cycle – negative and rising. Market direction:- Weak UpTrend. Momentum – Neutral. RSI – 49.8.
High Yield bond ETF (HYG) closed at 88.39 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 0.39. Fractal Chaos Band – closed above its FCB Upperband. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising slope. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 66.3.
Currencies (Weekly charts) The dollar index ($DXY) closed at 97.349 with a bullish candle below its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Weekly trading range – 1.044. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and falling slope. Medium Cycle Wave – negative and falling slope. Short cycle – negative and falling slope. Market direction:- Strong DownTrend. Momentum – Weak Downward. RSI – 48.3.
EUR/USD closed at 1.1114 with a bearish candle above its 8 EMA, 21 EMA and below its 50 SMA, 200 SMA. Weekly trading range – 0.012. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – negative and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and falling slope. Market direction:- Weak UpTrend. Momentum – Weak Upward. RSI – 49.9.
USD/JPY closed at 109.54 with a big bullish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Weekly trading range – 2.043. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – negative and falling slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising. Market direction:- Weak UPTrend. Momentum – Weak Upward. RSI – 46.6.
Relative Strength – Sectors On a 3-monthly lookback, the relative strength order of the ETFs are XLE, XLI, XLV, XLK SPX, SPY, /ES, XLF, XLY, XLV, XLU, XLP, XLE and XLB respectively.
On a 12-monthly lookback, the relative strength order of the ETFs are XLV, XLK, SPX, SPY, /ES, XLY, XLI, XLF, XLP, XLU, XLB and XLE respectively.
Market Internals Market Sentiment is extremely bullish. Market Breadth is sloping downwards showing more losers than gainers. Volume Acc/Dis is sloping downwards showing distribution. Skew is at 128.15. Vix is at 12.56 and Vix futures 13.63.
The Week Ahead Market Sentiment is extremely bullish. Skew is normal. Market internals have weakened. The Non-Farm Payroll for December 2020 shows a weakening and that took the market down.
Vix is below 13 and Vix futures are below 14 and has decreased. The indices broke upwards to new high before retreating. As the indices keep moving to new highs, the likelihood of a significant pullbacks increases.
To Your Wealth! Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
10 January 2020 – Weekly Review – All Time high and pull back
Indices (Weekly chart)
Dow Transportation ($DJT) closed at 10973.88 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 309.59. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short Cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Weak Upward. RSI – 57.2. The index is in its monthly Squeeze.
Dow Industrial ($DJI) closed at 28823.77 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 590.44. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. It is in a monthly Squeeze. RSI – 71.5.
Russell 2000 closed at 1657.6433 with a spinning top doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 26.32. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short Cycle Wave – positive and falling slope. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 63.4.
Nasdaq 100 closed at 8966.6362 with a bullish marubozu candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 310.98. Fractal Chaos Band – Above its FCB upper and lower band. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 78.4.
S&P 500 closed at 3234.85 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 46.11. Fractal Chaos Band – Above its FCB Upperband. Long Cycle Wave – positive and rising. Medium Cycle Wave – positive and rising. Short cycle Wave – positive and rising. Market direction – Strong UpTrend. Momentum – Strong Upward. RSI – 73.6.
Metals and Commodities (Weekly charts)
WTI Crude oil futures (CL) closed at $59.12 per barrel with a big bearish candle below its 8 EMA and above its 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 6.99. Fractal Chaos Band – Within its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and falling slope. Short cycle – positive and falling slope. Market direction:- Strong UpTrend. Momentum – Weak Upwards. RSI – 52.4.
Gold futures (GC) closed at 1563.2 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range was 72.3. Fractal Chaos Band – closed above its FCB. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising slope. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 70.1.
Bonds (Weekly charts)
Bond futures (/ZB) closed at 157’22 with a bearish candle below its 8 EMA, 21 EMA and above its 50 SMA, 200 SMA. Weekly trading range was 3.6875. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and falling. Medium Cycle Wave – negative and flat. Short cycle – negative and rising. Market direction:- Weak UpTrend. Momentum – Neutral. RSI – 49.8.
High Yield bond ETF (HYG) closed at 88.39 with a bullish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Weekly trading range – 0.39. Fractal Chaos Band – closed above its FCB Upperband. Long Cycle Wave – positive and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising slope. Market direction:- Strong UpTrend. Momentum – Strong Upward. RSI – 66.3.
Currencies (Weekly charts)
The dollar index ($DXY) closed at 97.349 with a bullish candle below its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Weekly trading range – 1.044. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – positive and falling slope. Medium Cycle Wave – negative and falling slope. Short cycle – negative and falling slope. Market direction:- Strong DownTrend. Momentum – Weak Downward. RSI – 48.3.
EUR/USD closed at 1.1114 with a bearish candle above its 8 EMA, 21 EMA and below its 50 SMA, 200 SMA. Weekly trading range – 0.012. Fractal Chaos Band – Closed within its FCB. Long Cycle Wave – negative and rising slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and falling slope. Market direction:- Weak UpTrend. Momentum – Weak Upward. RSI – 49.9.
USD/JPY closed at 109.54 with a big bullish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Weekly trading range – 2.043. Fractal Chaos Band – closed within its FCB. Long Cycle Wave – negative and falling slope. Medium Cycle Wave – positive and rising slope. Short cycle – positive and rising. Market direction:- Weak UPTrend. Momentum – Weak Upward. RSI – 46.6.
Relative Strength – Sectors
On a 3-monthly lookback, the relative strength order of the ETFs are XLE, XLI, XLV, XLK SPX, SPY, /ES, XLF, XLY, XLV, XLU, XLP, XLE and XLB respectively.
On a 12-monthly lookback, the relative strength order of the ETFs are XLV, XLK, SPX, SPY, /ES, XLY, XLI, XLF, XLP, XLU, XLB and XLE respectively.
Market Internals
Market Sentiment is extremely bullish. Market Breadth is sloping downwards showing more losers than gainers. Volume Acc/Dis is sloping downwards showing distribution. Skew is at 128.15. Vix is at 12.56 and Vix futures 13.63.
The Week Ahead
Market Sentiment is extremely bullish. Skew is normal. Market internals have weakened. The Non-Farm Payroll for December 2020 shows a weakening and that took the market down.
Vix is below 13 and Vix futures are below 14 and has decreased. The indices broke upwards to new high before retreating. As the indices keep moving to new highs, the likelihood of a significant pullbacks increases.
To Your Wealth!
Would you like to learn to trade stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
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