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Market Recap – Thursday, November 29th 2018

November 29, 2018

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MARKET SNAPSHOT
Dow25337.74-27.59(-0.11%)
Nasdaq7273.29-18.51(-0.25%)
SP 5002738.03-5.96(-0.22%)
10-yr Note+8/323.027
NYSEAdv 1375Dec 1536Vol 800.1 mln
NasdaqAdv 1409Dec 1632Vol 2.0 bln

 

IN THE NEWS HIGHLIGHTS:
  • Numerous trade headlines have been at the forefront of trading.
  • WSJ reports of talks that could forestall tariffs until spring 2019; unnamed sources.
  • Peter Navarro will reportedly attend dinner with President Trump and President Xi on Saturday.
  • Fed echoes Powell and says data-dependent language should replace “further gradual increases” in the future; December rate hike expected.
  • Tech, financial stocks underperform.
  • Crude oil rebounds.
  • U.S. Dollar closes flat.

 

RECAP– The market closed slightly lower following a late afternoon selloff which saw it give up all of its gains. Crude oil rebound today as it traded briefly below $50. The US Dollar closed flat after a volatile trading day.

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

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


Economic Calendar

Today

  • November 29: Unemployment Claims – Actual: 234K  Forecast:  221K  Previous:  224K
    • New unemployment claims came in significantly higher than expected, but remain at low enough levels that it is not alarming. There is no sign as of yet that there is a progressive weakening of the labor market.
  • November 29: FOMC Meeting Minutes

Upcoming Reports

  • Nothing major left this week.

 

FedWatch December 19 Rate Hike Probability for November 29:  82.7% (View the probability chart here)


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

  • RSI is below 50 signifies a condition of bearishness.
  • On Balance Volume is below its moving average.
  • The market has broken its medium to long term bullish run earlier in the month. It is currently in a short to mid-term bearish run.
  • The market appears to be overextended to the down-side but bearish momentum is still strong with the chart looking to test a support level of 2600.
  • The market hit intraday resistance of around 2750 before it gave up all it’s gains to close slightly lower.
  • With that 2740 level being a significant level of support/resistance in the past, it would appear to be a significant level should this short-lived bearish retracement come to an end.

 


A Look Into the Heat Map

The market was a sea of green following Fed Chair Powell’s comments.

(click on symbol for chart)
SPX – Bearish 
DOW– Bearish
Nasdaq– Bearish
Russell – Bearish

VIX – 18.79

COMMODITIES

Oil (USO)Bearish
Ag (DBA)Bearish
GLD Bearish  
SLVBearish 

THE DOLLAR

UUP USD weighted ETF – Bullish

 


SOLON’S TRADING THOUGHTS

The market moved sharply yesterday following Fed Chair Powell’s comments. Saying that interest rates are closer to neutral is a far departure from previous hawkishness for the new Fed Chair and the markets moved sharply in response. The equities market shot higher in response while the US Dollar sold off sharply due to the perception of a softer monetary policy. It would be interesting to see if this would have a long term impact, but with interest rates still rising, it should have an adverse effect on equities while the US Dollar strengthens.

The bullish momentum from this past week’s rally seems to have stalled as the market is resting at resistance and looks ready to resume selling.


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1 Reply to “Market Recap – Thursday, November 29th 2018”

  1. ZERENOMBADYKOW says:

    Wondering what’s going on with market recap ? Haven’t seen it for a few days.Always started my day by reviewing it.

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