Dow Appears To Have Bottomed Leaving Thursday's Stocks Uncertain

 | Jan 19, 2017 01:27AM ET

The Hoot

Actionable ideas for the busy trader delivered daily right up front

  • Thursday uncertain.
  • ES pivot 2263.50. Holding above is bullish..
  • Friday bias uncertain technically.
  • Monthly outlook: bias higher.
  • YM futures trader: no trade tonight.

Recap

So last night I called Wednesday higher. Now both the NASDAQ and the SPX did in fact finish higher but unfortunately my call is for the Dow and that sadly ended lower – by all of 22 points. So that's a miss, though a small one as the Dow now extends its losing streak to four. But it's the third reversal candle in a row – two spinning tops and a hammer and the third day in a row we've tested the lower BB. Thing is, it's a rather unusual week, being the first op-ex of the year plus a presidential inauguration. Let's see what the charts have to say about that, because that's the only thing that matters, not the Sore Loser Brigades converging on Washington. Or the Moneyed Elite freezing their butts off in Davos. There are better places to ski in Switzerland anyway.

The technicals

The VIX: Well it just goes to show ya. I was figuring a move lower in the VIX but on Wednesday it took a 6% jump for a bullish engulfing candle that sent me evening star theory packing. Just like the Spanish Inquisition, I wasn't expecting that But now the VIX is overbought but with a rising stochastic. Hmmm – on balance at this point I have to say that there could be more upside left.

Market index futures: Wednesday night, all three futures were slightly lower at 12:30 AM EST with ES down 0.02%.

ES daily pivot: Wednesday night, the ES daily pivot rose again from 2263.50 to 2264.42. ES remains above its new pivot so this indicator continues bullish.