Since breaking out (of the grey-box) in the beginning of the new year, NDX has been in an uptrend like never before??
Despite the predictions (of financial guru's) of a slower economy and a down trend, in the equity markets, commensurate with the change in the US Govt, the Fed signaling hikes in interest rates this year, the market is unaffected. It seems to be welcoming the announcements of de-regulations and the enactment of restrictions on foreign trade. One of the reasons for this bull run could be the better than expected earnings this quarter being reported by the US companies, as well as, the prevailing economic conditions such as record low unemployment and interest rates.
Today, I read somewhere on twitter that the current sequence of consecutive up days in the markets has been a record not seen in the last 40 years. I don't know if that is true? what I do see is that every single attempt by the bears to bring the markets down, has been meet with a strong resistance from the bulls. Today was a good example. As NDX gapped down quite a bit as the markets opened but it ended the day in green territory. It was quite evident that all the sell orders are being absorbed instantaneously by buy orders from the hungry bulls. It almost felt like someone was preventing the market from going down tod. Who knows may be the fed, a another big institution from a foreign country, a group of large banks, etc. are defending certain levels of the indices for their vested interests. The $ (USD) has been in a similar uptrend since Aug last year and could be a partial catalyst for the current move in the equities.
Despite the appearance of a fierce upward move in the indices, it has been a gradual grind, slowly drifting upwards in small increments. On several days of the current vertical up move, its hard to tell, if the market really closed up or down? One of my observation has been the persistence of low volatility over this period.
From a technician point of view the market is way over extended above its (most commonly used) 20, 50, 200 DMA's and is ready for a pullback any time.
Despite the predictions (of financial guru's) of a slower economy and a down trend, in the equity markets, commensurate with the change in the US Govt, the Fed signaling hikes in interest rates this year, the market is unaffected. It seems to be welcoming the announcements of de-regulations and the enactment of restrictions on foreign trade. One of the reasons for this bull run could be the better than expected earnings this quarter being reported by the US companies, as well as, the prevailing economic conditions such as record low unemployment and interest rates.
Today, I read somewhere on twitter that the current sequence of consecutive up days in the markets has been a record not seen in the last 40 years. I don't know if that is true? what I do see is that every single attempt by the bears to bring the markets down, has been meet with a strong resistance from the bulls. Today was a good example. As NDX gapped down quite a bit as the markets opened but it ended the day in green territory. It was quite evident that all the sell orders are being absorbed instantaneously by buy orders from the hungry bulls. It almost felt like someone was preventing the market from going down tod. Who knows may be the fed, a another big institution from a foreign country, a group of large banks, etc. are defending certain levels of the indices for their vested interests. The $ (USD) has been in a similar uptrend since Aug last year and could be a partial catalyst for the current move in the equities.
Despite the appearance of a fierce upward move in the indices, it has been a gradual grind, slowly drifting upwards in small increments. On several days of the current vertical up move, its hard to tell, if the market really closed up or down? One of my observation has been the persistence of low volatility over this period.
From a technician point of view the market is way over extended above its (most commonly used) 20, 50, 200 DMA's and is ready for a pullback any time.
