With a quiet day ahead for the Presidents Day holiday, US indices are likely to remain thinly traded, which has been the case on Globex since the start of the day. And the question as always for investors, is when and if the current rampage higher is set to end any time soon? The short answer is no, not for the time being, as the NQ and ES emini futures contracts drag the YM emini behind them, with the NQ now testing the 9700 area.
Bullish sentiment was further reinforced last week, with the price action of Thursday, which saw a strong reversal intraday creating a candle with a deep lower wick, and on high volume as the big operators stepping in, buying the initial weakness and driving the market off the lows to close near the open. Note the trend monitor indicator which remains firmly blue and with a low volume node now ahead, expect to see further progress higher later in the week, once markets return to full participation.
By Anna Coulling
Charts from Ninja Trader and the indicators are my own and available from Quantum Trading
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