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- Friday higher....
- ES pivot 2056.25. Holding above is bullish.
- Next week bias uncertain technically.
- Monthly outlook: bias higher.
- Single stock trader: VZ continues bullish
The technicals worked nicely Thursday with some nice broad-based gains. I'm running behind again tonight so this one will be quick.
The Dow: A nice gain Thursday confirming Wednesday's inverted hammer and bounce off the lower BB. Looks higher Friday.
The VIX: Last night I wrote "I say the VIX is lower Thursday". And so it was, down 8.6% on a tall rd marubozu. A bearish stochastic crossover now in place plus a rising RTC exit and falling indicators all point for more downside Friday.
Market index futures: Tonight, all three futures are higher at 12:24 AM EDT with ES up 0.07% ES did well Thursday confirming the inverted hammer and forming a bullish stochastic crossover. More upside possible Friday
ES daily pivot: Tonight the ES daily pivot finally rises from 2043.33 to 2056.25 But we're still above the new pivot so this indicator remains bullish.
Dollar index: A rare decline here Thursday but on a green candle. Rising RTC intact though.
Euro: An even more rare gain for the euro, to 1.0599. But the falling RTC here is also intact.
Transportation: Wednesday's bullish divergence worked great with a 1.22% pop on Thursday. A completed bullish stochastic crossover, a lower BB bounce, and a bullish falling RTC exit and that all spells more upside on Friday in my book.
January 8 6 4 1 0.563 627
February 6 4 5 3 0.692 183 March 3 3 1 2 0.625 617
And the winner is...
The charts tonight look generally pretty strong and Mr. Market seems to have recovered his mojo, so I'm just calling Friday higher. That's all she wrote - see you again Sunday night!
Single Stock Trader
Our new long in VZ was rewarded nicely on Thursday with a 2.2% pop on noises of possible short-covering. With a bullish stochastic crossover in place, a bullish RTC exit, indicators having bottomed but still not quite out of oversold, and increasing volume into the close this one looks continued bullish on Friday. We're going to let it run.