7 January 2016 – Another big drop!

The first week of this year has brought many surprises and is the harbinger of things to come. The market continued its drop pre-market but the cast market was relatively muted.

Dow Transportation had a small gap down and continued to drop in the first forty minutes of trading before pausing. It continued its downward momentum and closed with a bigh bearish Marubozu candle within a bearish trend continuation candle pattern. Pivot momentum remains downward. MPM is showing nett selling pressure. This index is in oversold territory.

Dow Industrial had a big drop on market open and range traded for the morning session. It continued its downward momentum in the afternoon session and closed with a big bearish Marubozu candle. Pivot momentum remains downward. MPM is showing nett selling pressure. The index is in oversold territory.

Russell 2000 gapped down and then had a big drop on market open. It then range traded for the rest of the morning before continuing its drop and closed with a big bearish Marubozu candle. Pivot momentum remains downward. MPM is showing nett selling pressure. The index is in oversold territory.

Nasdaq 100 had a big gap down on market open and rallied in early morning trading. It sold off and continued its downward momentum and closed with a inverted hammer candle in oversold territory. Pivot momentum remains downward. MPM is showing nett selling pressure.

S&P 500 dropped on market open and then range traded for the morning session. It continued its downward momentum and closed with a big bearish Marubozu candle. Pivot momentum remains downward. MPM is showing nett selling pressure. The index is in oversold territory.

Market sentiment is bearish. Market breadth is sloping downward showing nett losers to gainers. The indices are now oversold territory and likely to either trade sideways or have bounce for a couple of days. Lower support levels are likely to be tested in the near future.

To YOUR wealth!