Daily Archives: January 9, 2017

Aces and Eights

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SPX and NDX made new all time highs on Friday, and the minimum requirement that we were looking for in the high that is forming here has been met. There is a setup for sharp retracement from here, though it’s very much still in the inflection point still, and I’ll be showing you on the last chart why I think the setup favors the bulls, though it could very much go either way.

On the SPX chart there is now a daily RSI 14 sell signal brewing, with NYMO divergence and SPX close to rising wedge resistance. SPX daily chart:

170108 SPX Daily

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Crude’s Tight Range

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There’s not a lot going on this morning, but oil is kind of interesting, down nearly 2.5% as I’m typing this due to concerns that the U.S. producers will be ramping up their output due to stronger prices. For weeks now, oil has been in a very tight range of only about $2. The key, though, is the lower end of that range – about $52 – because, if broken, we could finally see the uptrend snapped and move back into the upper 40s, dragging energy stocks down with it.

0109-crude