Yesterday I called the market higher for today and that's just what it did, to the tune of nearly Dow 76 points. After three consecutive days of gains, the question is, can we make it four? I think we can. All of the Dow indicators are just coming off oversold readings. The short stochastic looks particularly bullish. Todays' green candle took us out of the descending RTC channel too (just as the ES did yesterday) and that is a bullish trigger.
I also note no resistance in the Dow until the 12,850 area from the start of this month. The Dow's upper Bollinger band is even further away, at 12,962. And the VIX is still coming down from overbought levels. Today's drop only brought it back down to the middle of its Bollinger band range. I see nothing on the VIX chart suggesting a reversal and that is also bullish for stocks.
Finally, all three futures (ES, NQ, and YM) are up right now (1:30 AM EDT), albeit only modestly. So barring any catasrophic news items overnight, I see no reason why we can't extend the Dow's winning streak one more day on Wednesday.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment
Due to some people who just won't honor my request not to post spam on my blog, I have had to re-enable comment moderation. Comments may take up to 24 hour to appear, depending on when they're made. Sorry about that.