The chart shows the daily Ichimoku chart, with the NAS100 holding at its cloud support.
Last week Thursday’s candle has acted as a bullish anchor (blue arrow). I.e. candles on either side have higher lows. Moreover, the following day showed tremendous bullish follow-through. We are now looking to see if today’s candle (red arrow) will act as the next bullish anchor in a series. We would need to see another blue candle with a higher low that closes above today’s high. If this price action does chart, further bullish developments would need to include:
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The orange lagging line moving above price (red ellipse).
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Price moving above the black base line and the base line starting to trend up (blue rectangle).
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The forward cloud twisting and showing green.
Risk markets leading up to the November 3 elections are likely to show volatility. However, once this uncertainty settles, the liquidity injection by the Fed into the economy which continues to suppress yields at the lower-risk end of the spectrum is supportive. Moreover, the NAS100 showed the greatest relative strength of the indices after the markets bottomed in late March. As such, bullishness here is important for general risk buoyancy.
Past performance is not an indicator of future results.
CHART SOURCE: FXCM Marketscope 2.0
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