A very balanced day with a narrow range. A doji daily candle. The market took a pause to build a mature balance. Usually, this type of a price action leads to a directional move in the following day. Watch for a conviction, a strong bar originated from the high value node around 2633-37. That conviction with a good volume should take the price above 2677 or below 2596. Recently, the correlation between the indices was high. They move in sync. However, if one of them shows its hand first that could be a first sign. Some observation: The bonds continue to rise, the institutions buy safe assets. The dollar was trending higher today. These two factors are not supporting the rise of the equities.
01/24/2019
01/24/2019
Comment:
Most of the heavy lifting was done by Asian and European sessions. A move from the 2633-37 high value node had happened to upside making the RTH opening with a gap up. The RTH session did not do much though, however, the buyers managed to sustain the Globex gains. The market balanced at the upper edge of the bigger balance. This is a good thing. If the price continues to balance above 2647.75 it would lead to a breakout and a trend day to upside. A failure to sustain higher prices would do the opposite and a potential retest of the 2596 and even lower. Next week the largest tech stock are due to report plus the FOMC meeting. Those two market moving events could do the trick.