Guy S. Ortmann, CMT | Jan 19, 2016 08:45AM ET
Downtrends Remain Intact
Opinion: All of the indexes closed lower Friday with broadly negative internals as volumes increased from the prior session. However, as sizable as the declines were, support levels held in almost every case with the exception of the COMPQX. We now find the data extremely oversold and suggesting a short term bounce may be at hand as seen in the futures this morning. However, the intermediate term remains a concern as market breadth remains extremely poor, intermediate downtrends remain in place, overhead supply will now be encountered during rally attempts and commodities remain in downtrends suggesting weak industrial demand.
SPX: 1,872/1,950
DJI: 16,000/16,595
COMPQX; 4,418/4,711
DJT: 6,580/7,022
MID: 1,269/1,315
RUT: 982/1,052
VALUA: 3,803/4,070
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.