Oil Breaks Down, Equities Climb
Buyers are back into equities as oil prices drop and news that the National Association of Realtors reported that pending home sales rose 0.7% in February. The exchange generated volume ratios are indicating solid buying at the start.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity index derivative products are indicating strong upward momentum readings. The RSI for the e-mini S&P 500 (EPM7), the e-mini NASDAQ 100 (ENQM7), the DJ Euro STOXX 50 (DSXM7) and the Dow (DJI) are hitting high uptrend momentum levels.
The Q.NYSEVolRatio is flashing a reading of 77.5% up-volume, which is a sign of widespread buying. The Q.NASDAQVolRatio reading is 74.2% up-volume, which is indicating solid buying pressure.
The MACD and the RSI reading for the CLEK7, Crude Oil for May traded on Globex, is indicating a short-term downtrend.
The RSI for Gold (GCJ7) and the MACD action is indicating a short-term uptrend.
Yields are up in the Treasury market today.
The EUR/USD pair is trading slightly higher based on the MACD and the RSI reading.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows the market trending higher. The volume ratio readings running above 70-percent up-volume indicates very good buying.
The NASDAQ Composite index and the NASDAQ volume ratio readings show the market trading up through recent resistant levels. The volume ratio is a bullish 75-percent up-volume reading.
We want to see the volume ratios climbing while above 50-percent up-volume for a bullish sign.