Short Term Trading Week Starting: 29 Jan, page-97

US Early Update

Trade talk news pending...

The US indices are mixed but generally higher today and SPX verged on an important retrace level and the 100 day moving average in intraday action but did not reach it yet. That high is just below the 2712 target that bulls had in mind on Monday and above the contested 2018 neutral zone of 2673 or ES 2668. NDX, having brushed with its own 100 day average is now just below it. The index was true to Tuesday's NYSE end of day buying action and the NQ futures ran pretty hot on Wednesday night on the back of FB earnings and the FAANG recovery. The Dow for its part is straddling the 61.8% retrace of the major downtrend, having breached that level yesterday.

Going into the close we have a rather large NYSE MOC sell order of -2.1B, on NYSE breadth of +1.48:1 and NASD breadth: +1.51:1. and I assume this is pension fund rebalancing. That number could well get eaten in the next few minutes depending on trade related news.