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- Thursday uncertain.
- ES pivot 2344.42 Holding above is bullish..
- Rest of week bias uncertain technically.
- Monthly outlook: bias higher.
- YM futures trader: no trade tonight.
Last night I was worried about the short-term overboughtedness of the market but with a solid four day win streak going I didn't want to stand in front of that buss so I called Wednesday higher. Good thing too because the Dow just kept on chugging, making it six in a row now (including the small doji that started this all off on the eighth). We are now in one of the steepest rising RTC's I've ever seen, with a Pearson's of 0.991. Now as we near op-ex on Friday and our penultimate market call, we're just looking for signs that this rally might be over and done. Let's see what the charts have to say about it.
Market index futures: Tonight, all three futures are mixed at 12:27 AM EST with ES down 0.07% but NQ up 0.05%.
ES daily pivot: Tonight the ES daily pivot rises again from 2331.50 to 2344.42. So ES continues above its new pivot (though not by much at this point) and this indicator continues bullish.
January 10 2 7 1 0.846 595 February 5 0 6 0 1.000 626
And the winner is...
That big jump in the VIX on Wednesday can't just mean nothing. And the market is getting extremely short-term overbought, with the Dow's RSI at 94 and the SPX hitting 100. Unfortunately, that's about all I've got in the bear department. The trans continue to outperform and the cup & handle I noted in IBM two days ago is paying off nicely. But this winning streak is getting pretty old in the tooth and with op-ex coming right up, things could get a bit wacky. Right now I'm wanting to call the market lower but I really can't without some good old fashioned bearish candles. So once again I'll have to settle for Thursday uncertain. Such is life.
YM Futures Trader
No trade tonight.