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- Wednesday higher.
- ES pivot 2047.83. Holding above is bullish.
- Rest of week bias uncertain technically.
- Monthly outlook: bias higher.
- YM futures trader: no trade.
Huh - well that was interesting, After some back and forth out the gate, on Tuesday the Dow then motored higher to finish up 165 points by the closing bell. This finally moves the needle so let's take a quick look at the charts for Wednesday.
The Dow: A tall green marubozu here generated a bullish stochastic crossover as well as a bullish setup on a descending RTC exit The upper BB isn't til 17,846 so there's still a bit of room to run.
The VIX: After three days of back & forth, the VIX finally broke down on Tuesday, off nearly 9% for a bearish stochastic crossover. That's finally looking like more downside on the way.
Market index futures: Tonight, all three futures are higher at 12:15 AM EDT with ES up 0.23%. Es resolved two days of indecision on Tuesday to the upside with a tall green near-marubozu to confirm a bullish stochashtic crossover. that all looks good except for the fact that there's strong resistance at 2066. And ES seems to be gearing up for that already with a run higher in the overnight.
ES daily pivot: Tonight the ES daily pivot rises from 2041.17 to 2047.83. That now puts ES above its new pivot so this indicator turns bullish.
Dollar index: The dollar has now broken six-month support and with the failure of Monday's spinning top on Tuesday, there's no sign of an immediate move higher here.
Transportation: On Tuesday the trans confirmed their bullish stochastic crossover as they continue to see-saw higher, down-up-down-up. We're nearing the 200 day MA and have already made two attempts on it in the last three days. With indicators still just barely oversold, it's looking good for the trans to take another shot at 7796 on Wednesday.
Month right wrong no call conditional batting Dow
January 9 5 5 0 0.643 1433
February 9 3 5 3 0.800 1133
March 8 6 6 1 0.600 222
April 3 1 3 1 0.800 160
And the winner is...
Tuesday's action seems to have kicked the market out of its recent stupor and produced a number of decent bullish signs. With the overnight futures also guiding higher, and mindful of the fact that ES has alternate between gains and losses for six straight days now, I'm going to go ahead and call Wednesday higher
YM Futures Trader
No trade tonight..