My E-Mini S&P tout for Friday notes that Thursday’s blithe rally, impressive as it may have seemed, failed to surpass any significant peaks on the hourly chart. Even so, odds of a short-covering frenzy will be somewhat higher on Friday ahead of a weekend lengthened by the Martin Luther King holiday. If DaBoyz can’t trigger off a squeeze with that going for them, look for the Great New Year’s Bust of 2016 to gain momentum next week.
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Wow I could not have scripted A better Hollywood movie
Sell the rally!
Just a hunch, but if you look at the monthly chart of CAD / USD there is a pivot of possible significance coming in at January 1998, a long, long 18 years back that might just be the trigger for a tradeable rally in crude oil next week. The number on my chart is 0.6867 which was briefly touched intraday before the close at 0.6879 which was pretty interesting to me although I have no idea what such a bounce in oil might portend for stock markets if that comes into play next Tuesday. A second support lies at 0.6862 posted back in April of 1999 which while slightly lower still offers a tantalizing hint that the Canadian dollar is now poised near a point where it should see something of a rally, however modest. Like I said, its just a hunch but Tuesday should tell the tale.
The critical 16400 on Dow failed to hold so I would have the guess there will be selling into wkend with options expiring