Actionable ideas for the busy trader delivered daily right up front
- Monday higher.
- ES pivot 2084.33. Holding above is bullish.
- Rest of week bias uncertain technically.
- Monthly outlook: bias lower.
- YM futures trader: short at 17,670.
It was all over the news last Friday about how the SPX was on its longest losing streak in 35 years, down nine in a row. That's going by closing values - two of those nine were actually winning days but still closed lower than the previous close. Meanwhile, the Dow is down seven in a row, all on red candles. How long can this go on? Let's see what's in the charts for Monday.
The Dow: On Friday, the Dow's RSI hit zero. That's as oversold as it gets. The last time it did this was on August 2nd, after a similar extended losing streak. The next day was higher, and we weren't even close to the lower BB back then. Now we've been sliding down the lower BB for four days now. With an inverted hammer, I have to think a reversal is overdue. Streaks (losing or winning) obviously don't go on forever before coming to an end.
Market index futures: Tonight, all three futures are higher at 12:16 AM EST with ES up a whopping 1.27%.
ES daily pivot: Tonight the ES daily pivot falls from 2087.33 to 2084.33. ES's big pop Sunday evening put it well above its new pivot so this indicator turns bullish.
average points 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 6 4 8 2 0.667 416
May 9 3 4 4 0.813 756
June 8 5 7 1 0.643 1393
July 5 6 6 2 0.539 -304
August 1 3 8 0 0.250 120
September 4 5 6 0 0.444 -59
October 10 3 4 1 0.786 314 November 0 1 2 0 0.000 -105
And the winner is...
Well apparently I'm not the only one to have noticed all of the extremely oversold reading on the charts The pendulum swings one way and then it swings back. And it looks like the backswing has begun. The new Sunday overnight futures are registering the biggest gain I've ever seen in12 years of doing this. Much of this though is no doubt due to the latest news that the craven FBI has suddenly miraculously determined that Liar Clinton's emails didn't violate any laws after all. I sense the shadowy presence of Obama's large thumb in the background here. But hey, whatever drives the market higher, eh?
So at this point I think it's a fairly safe bet to go ahead and election or not, call Monday higher.
YM Futures Trader
No trade tonight.