The Hoot
Actionable ideas for the busy trader delivered daily right up front
- Wednesday higher.
- ES pivot 2322.83 Holding above is bullish..
- Rest of week bias uncertain technically.
- Monthly outlook: bias higher.
- YM futures trader: no trade tonight.
Monday night I wasn't quite sure which way the market was going on Tuesday so I called it uncertain. Turn out Mr. Market had no doubts at all though, it was basically a meandering continuous rise good for 92 points by the closing bell. So we left that one on the table but as the old saying goes, nothing ventured, nothing lost. So let's just move on to Thursday as op-ex week rolls on.
The technicals
The VIX: On Monday the VIX moved higher, but on a red candle. So which do you go with – the confirmation of Friday's doji or the steady intraday downtrend? Turns out the latter was the right answer as the VIX shed three percent on Tuesday giving up the 11 handle and bringing it to a closing level not seen since the end of last month. And now with two red candles in place and recent support broken and the lower BB all the way down at 10.19 I see nothing bullish about this chart.
Market index futures: Tuesday night, all three futures were higher at 1:22 AM EST with ES up just one tick but YM up 0.14%
ES daily pivot: Tuesday night the ES daily pivot rose again from 2322.83 to 2331.50. But once again ES remains above its new pivot so this indicator continues bullish.
Other than all the indicators now being overbought, I can't find any bearish signs on Tuesday's charts. With the Dow up now four in a row and YM looking healthy in the new overnight, this isn't a tape I particularly care to fight. Therefore I'm going to call Wednesday higher.
YM Futures Trader
No trade tonight.