NYA dominated by bulls lifting the market higher throughout the day
NYSE Composite Index (NYA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NYA finished the month 0.77% higher at 11893.78 after gaining $116.70 (0.99%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 11777.64, the index confirmed its breakout through the prior session high after trading up to $157.32 above it intraday.
Daily Candlestick Chart (NYA as at Jun 30, 2020):
Tuesday's trading range has been $210.39 (1.79%), that's slightly below the last trading month's daily average range of $224.39. 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. Prices continued to consolidate within a tight trading range between 11578.81 and 11961.62 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, NYA actually gained 1.54% on the following trading day.
Prices are trading close to the key technical resistance level at 11939.74 (R1).
NYSE Composite shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 11525.36, downside momentum might speed up should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NYSE Composite. Out of 344 times, NYA closed higher 54.65% 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 61.34% with an average market move of 0.29%.