NYA closes above its opening price after recovering from early selling pressure
NYSE Composite Index (NYA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NYA ended the week 3.51% higher at 11331.97 after edging lower $19.63 (-0.17%) today ahead of tomorrow's Memorial Day market holiday. Trading up to $77.79 lower after the open, the index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, NYA gained 4.16% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NYA as at May 22, 2020):
Friday's trading range has been $86.36 (0.76%), that's far below the last trading month's daily average range of $179.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NYA.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 11247.29 earlier during the day, the market bounced off the key technical support level at 11272.48 (S1). The failure to close below the support could increase that levels importance as support going forward.
NYSE Composite shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 11477.33 where further buy stops could get triggered. Further buying might move prices higher should the market test April's close-by high at 11675.30.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NYSE Composite. Out of 365 times, NYA closed higher 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.18% with an average market move of 0.35%.