The SPY, QQQ, IWM, and NYA were very bullish into Tuesday trading. Monday saw price action gap and run, remaining above VWAP for the entire session. Futures are off (-10) handles going into the Opening Bell.
The NYSE (NYA) composite recorded a major accumulation day (+10:1) up volume by “market on close” (MOC).
At this level of accumulation, the indicator helps to show how supply and demand factors are influencing price. Closes in this magnitude are infrequent, so it shows institutions were active in Monday’s session.
TICK cumulative was rising as well. This tells us institutions were buying more than they were selling on Monday. The “cumulative” measure shows these institutions have been buying non-stop since Thursday.
The Nasdaq 100 recorded a (+3.65:1) close, with 90% of its 100 component stocks bullish on Monday. Only 10 stocks were red for the day.
NYSE Composite – NYA
The NYSE composite index covers all of the stocks listed on the New York Stock Exchange. Currently, there are approximately 2900, the majority of which are from United States corporations and over 360 are foreign listings; however foreign companies are very prevalent among the largest companies in the index: of the 100 companies in the index having the largest market capitalization (and thus the largest impact on the index), more than half (55) are non-U.S. issues.
The index is about to enter an area where very little supply exists. Therefore, should the index transition into this zone, price action, in theory, could rally quickly up to overhead resistance noted with blue shading.
While a rally is not a guarantee, NYHILO in the bottom panel indicates “new highs” are expanding when it is above 50 and rising.
In addition, stochastic is rising from oversold, indicating the current wave higher is fresh and could continue.
Look for the dip in futures to get bought this morning and join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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