With the available source and data provided by StockCharts, we can see that Dow Jones has moved from “ Improving” to “Leading”. This means that there is an increased in bullishness and Dow Jones is gaining momentum. This is likely because of large cap moving/bouncing off the support/bottom. We can see the changes % at 4.7. Nasdaq is also doing well but it is losing momentum. Thus investors can still hold on to their current position as we predict that market is turning bullish soon.
Worst Sector?
With the plunge in $Brent last Friday, this led to sell off in the Energy stock. Other sectors doing well includes Technology, Cons. Staples, Health care, Utilities and Financials. The increase in momentum in Financials could be due to the better than expected Non-Farm payroll data. Traders are expecting a hike in USD coming in before March 2015. Thus Financials should be short-term bullish till further confirmation from FED. We did publish out yesterday that there are also a lot of IPO Tech stocks that will be issued Dec 2014. Thus with that in play, we should see Tech stocks moving in correlation with IPO technology stocks.
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