The stock market was a quiet melt up last week. Last Friday all three indices made new highs and had the heaviest volume (more than 65% over 50-day volume average) since the early October low. This could be a climax top because the ultimate top might occur on the heaviest volume day since the beginning of the advance.
The trade war phase one deal was done, and the UK election was also done with precise victory for the Brexit party. It seems like the coast is clear for the stocks market to march higher. In our previous blog we have said that the present rally will last at least until mid January 2020. Based on the price action from last week,
Last week all three indices had a mild selloff, which touched the previous breakout line but quickly closed above the breakout line. Despite the scary new development about the pending trade war phase one deal, the price action has been resilient. It’s impossible to predict what the December 15th White House tariff decision would be, but the price action predicts that the most likely outcome is no additional tariff to be put on December 15th, everyone will have a merry Christmas.
On the Eve of Thanksgiving holiday, the Trump administration announced the signage of the much waited Pro-Hong Kong bills. Because Thanksgiving is such an important national holiday, many market participants were away from the market, the market reaction to the news has been muted. It has been observed
