Thursday's Stock Market Looking To Head Higher
The Night Owl Trader | May 05, 2016 01:28AM ET
The Hoot
Actionable ideas for the busy trader delivered daily right up front
- Thursday higher.
- ES pivot 2060.42. Holding above is bullish.
- Friday bias uncertain technically.
- Monthly outlook: bias lower.
- YM futures trader: no trade.
Tuesday night I wrote that "I don't think the selling's done yet" and indeed it wasn't as the Dow dropped another 100 points on Wednesday. It's another Night Owl Lite so let's go right to the bottom line.
The technicals
Market index futures: Wednesday night, all three futures are higher at 12:14 AM EDT with ES up 0.31%.
ES daily pivot: The ES daily pivot falls again from 2060.42 to 2048.75. ES is now back above its new pivot so this indicator turns back to bullish.
The major charts generally don't look so hot, but the VIX put in only a small gain Wednesday on an inverted hammer that once again tested its upper BB. That's a good sign of a move lower. And ES has been down two days in a row now. I note that it has not put in a losing streak longer than that since the first week of January. And it's now putting in a non-trivial rally that has sent it back above it pivot in the overnight. Also oil is advancing again after putting in a long spindly doji star on Tuesday. So call me crazy but I'm going to go with that and go out on a limb to call Thursday higher.
YM Futures Trader
No trade tonight..
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