9 Minute Read

Market Recap January 4, 2016

January 4, 2017

By

MR
MARKET SNAPSHOT
Dow19944.95+63.06(0.32%)
Nasdaq5479.14+50.06(0.92%)
SP 5002271.51+13.68(0.61%)
10-yr Note0/322.448%
NYSEAdv 2592Dec 437Vol 529.28 mln
NasdaqAdv 2310Dec 603Vol 1464.40 mln

IN THE NEWS HIGHLIGHTS:

  • US markets continue to rally.
  • Gold and silver see continued relief.
  • Crude oil rebounds, paring back some of yesterday’s loss.
  • U.S. Dollar Index sinks, wiping out yesterday’s gain.

 

RECAP– The market continued to build off of the bullish momentum from yesterday’s close and rally higher on the day. Crude oil saw some relief, recovering from yesterday’s selloff. The US dollar finished the day significantly lower giving up yesterday’s gains, and then some. Due to weakness in the dollar, gold and silver finished higher.

In-depth look of daily news at Briefing.com (CLICK HERE)

In-depth look at after hours movers (CLICK HERE)


Economic Calendar

Today

  • January 4: FOMC Meeting Minutes
    • The highlight from today’s meeting minutes is that the FOMC board broadly agree that fiscal stimulus introduced by Trump that consists of infrastructure spending, tax breaks, and deregulation not only could lead to economic growth, but also lead to inflation risk. This could then lead to the Fed taking on a more hawkish and aggressive stance on raising rates.

 

Upcoming Reports

  • January 5: ADP Non-Farm Employment Change
  • January 5: Unemployment Claims
  • January 5: ISM Non-Manufacturing PMI
  • January 5: Crude Oil Inventories
  • January 6: Average Hourly Earnings m/m
  • January 6: Non-Farm Employment Change
  • January 6: Unemployment Rate

 

FedWatch February 1 Rate Hike Probability for January 4: 2.0%  (View the probability chart here)


A Look At The S&P 500 Chart – KEY Levels

  • RSI is above 50.
  • On Balance Volume is above its moving average.
  • Market had a shallow retracement last week.
  • Resistance can be identified at the 2275-2280 range.
  • The market is very close to breakout territory.

 


A Look Into the Heat Map

The market was bullish today with Financials and Consumer Discretionary leading the way.

MARKETS

(click on symbol for chart)
SPX –  Bullish
DOWBullish 
Nasdaq Bullish  
Russell  Bullish  

VIX – 11.85

 COMMODITIES

Oil (USO) –  Bullish 
Ag (DBA) – Bearish
GLD –  Bearish – Gold is seeing some relief following a brutal bearish run.
SLV –  Bearish – Same as gold.

THE DOLLAR

UUP USD weighted ETF –  Bullish

 


SOLON’S TRADING THOUGHTS

This is going to shape up to be a pretty busy week as far as economic news. There are many new reports that will be coming out which include FOMC meeting minutes, new jobless claims, as well as ADP and BLS employment change reports among others. This is as institutional traders are reentering the markets and volume will be picking up significantly. We did see more volatility across the board in all markets as equities, currencies, and commodities saw large intraday movements. It is still too early to pick out trends as they are not well defined yet.

The market is continuing to trend bullish. I am looking to see if the trend continues as it approaches a pretty big resistance level. 


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1 Reply to “Market Recap January 4, 2016”

  1. ThomasFlohr says:

    HAPPY TRADING YEAR !!! Thank You Solon !

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