Finally the market is showing signs of a little weakening. Last Friday all three indices made a new high at open, then it just didn’t have the energy to keep pushing higher to pass the open high in the morning. It broke down in the afternoon session and closed near the low of the day. The S&P 500 and the DOW made an outside
Last Friday the entire world woke up to the news that the US killed a top Iranian military commander in airstrike in Iraq. The futures fell hard initially overnight, but recovered half of the loss by the time the market opened on Friday morning. The market chopped around on Friday without significant selling pressure.
2019 finished with a great bang! The President achieved his goal of lower interest rate in 2019. At the height of the stressful time of the trade war negotiation, the Fed stepped in to lower interest rate three times in 2019. Now the Fed will stay on the sidelines unless inflation picks up. The phase one trade war deal is in the
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.
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.
