18 February 2016 – Market hitting some key resistance levels

The market indices have paused as they hit some key resistance levels.

Dow Transportation traded downward on market open. It carved a rounded bottom pattern for the day and closed with small bearish candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 99.3%. Support and resistance are at 6792.32 and 7652.8 respectively.

Dow Industrial range traded within a 50 point range and closed with a small bearish candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 83.2%. Fractal support and resistance are at 15503.01 and 16485.84 respectively. The Dow Industrial has exited its daily Squeeze but is still in its monthly Squeeze.

Russell 2000 range traded within an 11 point range and closed with a small bearish candle. Pivot momentum remains upward. Short term volumetric buying pressure is at 65.4%. Fractal support and resistance is at 943.1 and 1037.27.

Nasdaq 100 had a small gap up and then sold off for the day. It closed with a bearish Marubozu candle within a Dark Cloud Cover candle pattern. Pivot momentum is upward. Short term volumetric buying pressure is at 86%. Fractal support and resistance has changed to 3888.78 and 4301.63.

S&P 500 traded within a 12 point range throughout the day. It closed with a small bearish candle within a bearish harami candle pattern. Pivot momentum remains upward. The volumetric buying pressure is at 89.7%. Fractal support and resistance are at 1810.1 and 1947.2. The S&P 500 is in a monthly Squeeze and just exited its daily Squeeze.

Vix has dropped to 21.64.

Oil (/CL) futures has been moving up on production stabilisation lost a bit of ground and is now trading at $32.60 per barrel. Gold (/GC) futures made big gains and closed at 1226.9 an ounce. Silver (SLV) ETF closed at 14.76 with a small gain.

Junk bonds (HYG) made small gain and closed at 77.49. Bonds ETF (TLT) strengthened to close at 130.90. Semiconductor (SOXL) ETF made a small loss to close at 19.17. Biotech (IBB) ETFs lost ground and closed at 259.42.

The USD/JPY is going lower again and closed at 112.76. This is putting pressure on the market. EUR/USD is trading sideways at about 1.1122.

Market sentiment is bullish. Market breadth is sloping upward. The indices paused after a few days of uptrend. Oil prices may have bottomed.

The prognosis is that the market continues to be strong. The upward momentum is expected to hold for this week.

To YOUR wealth!