Stock Charts Appear To Be Moving Higher
The Night Owl Trader | Jan 20, 2017 02:12AM ET
The Hoot
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- Friday uncertain.
- ES pivot 2261.33. Holding above is bullish..
- Next week bias uncertain technically.
- Monthly outlook: bias higher.
- YM futures trader: no trade tonight.
The markets continued their recent sag on Thursday with the Dow shedding another 72 points, its biggest loss in two weeks and one that defied a lower BB touching hammer on Wednesday. That leaves the Dow now oversold as we finally, finally, at long last say hail, farewell and good riddance to Emperor Nerobama. Thank God for term limits and also for the Electoral College which spared us yet another four years of Obama in the form of his puppet. With any luck, that's the last we'll see of the Clintons too. So we now look to the end of the week, January op-ex, and a new president all rolled into one. Whew!
The technicals
The VIX: On Thursday the VIX confirmed Wednesday's bullish engulfing pattern with a 2.4% advance but did it with a classic green spinning top so that's a possible move lower on Friday.
Market index futures: Thursday night, all three futures were mixed at 1:49 AM EST with ES up 0.11% but YM down 0.07%.
ES daily pivot: Thursday night the ES daily pivot fell from 2264.42 to 2261.33. That leaves ES still above its new pivot so this indicator continues bullish.
Options expirations to me are only second to Fed days in uncertainty. Adding to the fun, January op-ex is historically weak according to the Stock Trader's Almanac but there's a few signs of a move higher in the charts tonight. As the Night Owl enters its last month, I'm having none of this and simply calling Friday uncertain.
That's all she wrote. See you again Sunday night.
YM Futures Trader
No trade tonight.
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