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
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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.
This is extremely well done analysis.
Points covered material, noting move to bond market
SviCapital
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@The_Unwind, thank you! Just looking for some clues.
CodedFlow
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and still we broke up the cone on M15 on the top side (just a bit) ... not sure why either.
SviCapital
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@LoLBeach, A trend line initiated from Dec lows is broken adding to those 2 factors indicated above. That builds a case for a downside move, but I'm not predicting. The market will show where it is going. I will tag along.
CodedFlow
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@SviCapital, correct. many arguments in favor of a big bear here... and still we are dragging our feet. why ? another reason is the controlled price in Oil. and the keyword is controlled. we are living in an era of fake news, fake economy and inflated numbers... otherwise not sure how to qualify what is going on for now. and yes - in a fake economy... you need to wait to see where the stream goes first. find justification after the fact... and hopefully some profit in the process. none of them being actually easy to be done... without a clear structure.
Points covered material, noting move to bond market