Market Direction Week of November 7, 2016©

Market Direction: BEARISH alert issued 10/27/2016

Last Week Review: Stocks recorded their ninth consecutive trading-day decline, as the jobs report revealed that the economy added 161,000 jobs in October, the unemployment rate dropped to 4.9%, and wages rose 2.8% over the past year – the fastest pace since 2009. This was the first time that stocks have fallen for nine straight days since 2008. This statistic seems ominous on the surface, but you may be surprised to learn that historically, stocks have generally increased after similar declines, rising 7% over the next six months on average, according to Ned Davis Research. And while stocks are about 5% off their all-time highs reached in August, we think pre-election anxiety has driven much of the recent market action.

How the market finished last week, the S&P 500 down 1.4%, the Nasdaq down 2.1%, and the Dow down 1.0%.

This Week: The moment we’ve all been waiting for, or dreading (or both), has finally arrived. This week will see the result of the US election, with the outcome expected early Wednesday morning. The bulls probably want to see some stabilization in oil prices next week given the correlation with equity markets. Oil broke through a long-term uptrend line this week, currently testing September lows. This will dominate an otherwise quiet week for economic data.

HSBC brings up the rear in the UK’s banking figures, while full-year numbers from Associated British Foods and Imperial Brands will dominate on the corporate front. 

 Economic Calendar: JOLTS (11/8), Wholesale Trade (11/9), Jobless Claims (11/10), Consumer Sentiment (11/11)

Some of the major earnings announcements on deck: PCLN, MYL, M, DIS, KORS.

$tockMarketDirection proprietary model is currently BEARISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, write us. Share with a friend. Cha-ching.

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