Market Update Into 1/7: A Volatile Start to 2019

A prepared trader is generally a profitable trader, and Sunday is a great day to get ready for the week ahead by studying up from last week’s price action. In this weekend’s analysis, we take a look at the broad markets after the first moves into 2019. After a rather sluggish start, Friday proved that there are some bulls still left in the equation. Will the bullish momentum continue into the rest of the month of January? Check out the charts in this blog to see how they look!

$SPY: Daily Candle

Written Analysis:

1. The price of $SPY has moved up to almost perfectly test the SMA (20) in the middle of the megaphone channel. The other two times this happened, the price eventually broke to the upside to test the trendline above or just below it.
2. The Vortex indicator VI- is converging towards the VI+ which has shown about two more bullish days after the cross before a reversal.
3. The MACD continued to have a bullish crossover with the bearish kiss on Thursday a bear fakeout.
4. The Williams %R is breaking out through the resistance Trendline above with more upside left.

$QQQ: Daily Candle

Written Analysis:

1. The price of $QQQ looks wildly similar to the SPY. Price tested the SMA (20) in the middle of the megaphone channel perfectly on Friday. The other two times this happened, the price eventually broke to the upside to test the trendline above or just below it but then reversed hard to the downside after.
2. The Vortex indicator VI- is converging towards the VI+ which has shown about two more bullish days after the cross before a reversal.
3. The MACD continued to have a bullish crossover with the bearish kiss on Thursday a bear fakeout.
4. The Williams %R is breaking out through the resistance Trendline above with more upside left into overbought territory.

$XBI: Daily Candle

Written Analysis:

1. The price of $XBI is the only ETF that blasted through the SMA (20) last week in the middle of the downward price channel. If continuation occurs on Monday, the channel resistance could be tested above.
2. The Vortex indicator VI- recently crossed through the VI+ which has confirmed more upside in the past.
3. The MACD is looking very healthy into next week with the fast continuing to break away from the slow but still under the zero line (line in which the histogram oscillates around).
4. The Williams %R is breaking out through the resistance Trendline similar to the last time back in October. However, this proved to be a fakeout in October so a blast to the upside towards overbought is going to be needed for this momentum to continue.

$AGEN: Before vs. After

This weekend’s “Before and After” shows $AGEN moving up hard after an inverse head and shoulders formation materialized on the daily candle. To learn more about these types of patterns and formations, check out our blog post here.

Before

After

Timestamps Captured This Week

$NFLX

$OPTT

$AGEN