|NYSE||Adv 1245||Dec 1676||Vol 801.0 mln|
|Nasdaq||Adv 817||Dec 1725||Vol 1.87 bln|
IN THE NEWS HIGHLIGHTS:
- Stocks try to find their footing following a string of modest declines.
- Top-weighted technology sector bounces back from recent weakness.
- Crude oil lower despite larger than expected decrease in oil supplies.
- US dollar rallies higher.
RECAP– The markets saw some selling overnight, but rallied following the opening bell to close flat. Crude oil sold off throughout the day despite a larger than expected decrease in supplies in the EIA inventory report. The US dollar continued to rally throughout the day.
In-depth look of daily news at Briefing.com (CLICK HERE)
In-depth look at after hours movers (CLICK HERE)
- December 6: ADP Non-Farm Employment Change – Actual: 190K Forecast: 189K Previous: 235K
- ADP payrolls rose according to expectations.
- December 6: Crude Oil Inventories – Actual: -5.6M Forecast: -3.2M Previous: -3.4M
- December 7: Unemployment Claims
- December 8: Average Hourly Earnings m/m
- December 8: Non-Farm Employment Change
- December 8: Unemployment Rate
FedWatch December 13 Rate Hike Probability for December 6: 100.0% (View the probability chart here)
A Look At The S&P 500 Chart – KEY Levels
- RSI is above 70 signifies that the market is overbought.
- On Balance Volume is at its moving average.
- Despite overnight selling, the market ended up closing flat.
A Look Into the Heat Map
The market was scattered following a flat finish, but Technology stocks managed to bounce back.
VIX – 10.98
UUP – USD weighted ETF – Bullish
SOLON’S TRADING THOUGHTS
This week, we are seeing volatility re-enter the market in the form of political questions coming from the nation’s capital. The first major issue comes from the president himself as special counsel Robert Mueller has found grounds to conclude President Trump did in fact obstruct justice by firing FBI Director James Comey and the president’s legal team coming to his defense claiming that the president is above the law in this case. A Trump impeachment can be very dangerous to a very frothy Market.
The next political item that could make or break this market is the prospect of tax reform. The market, and financials especially, has already baked in the prospect of tax reform in the recent rally since August. Failure to pass critical legislation would cause a major correction to the current bubbly market conditions. This is also a big week for economic reports as the first week of the month always introduces new jobs figures and employment data.
It would be interesting to see how bullish this market can get with the Santa Clause Rally right around the corner. If you are unfamiliar with the Santa Clause Rally, make sure to search the Tackle Trading site as there have been many great works in the past written on it by various coaches.
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