Bulls Negate Bearish Doji; New 2015 Highs Might Be At Hand
Declan Fallon | Nov 19, 2015 12:01AM ET
Yesterday was very good day for bulls. It saw Tuesday's weakness blown away in decisive fashion. Volume climbed to register an accumulation day for the indices.
The best of the action belonged to the NASDAQ 100. It gained nearly 2% in a move to challenge the 'bull trap'. It hasn't done so yet, but yesterday could be the day new highs are posted for 2015. Yesterday's gains came with a 'bull cross' in On-Balance-Volume.
The Dow regained the 200-day MA and added to the uptick in On-Balance-Volume, but it lost out in relative performance against Tech indices. After a period of out-performance, the Dow has spent the latter part of 2015 struggling to match the returns of other indices.
On the flip side, the S&P has had a better time in matching the returns of its peers. The index is outperforming Small Caps, but still has a way to go to make new highs for the year.
The Russell 2000 also performed well, firming up 50-day MA support. The index hasn't yet reversed its relative performance decline, but more days like yesterday will help.
Today may see some of yesterday's gains reverse, but whatever bearishness was generated by Tuesday's action was neatly undone by the strong performance of markets yesterday. Dip buyers look to be at work here.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.