Market Direction Week of December 12, 2016©

Market Direction: BULLISH alert issued 11/10/2016

Last Week Review: U.S. stocks jumped higher on the week with the Dow Jones Industrial Average and the S&P 500 up over 3%. In addition, small-cap stocks, measured by the Russell 2000 Index, were up over 5.5%. Interestingly, five major U.S. stock indexes (Dow Jones Industrial Average, S&P 500, NASDAQ, Russell 2000, and Dow Transports) all closed at record highs on Thursday for the first time in nearly 20 years. And while all but the Dow Transports closed at record highs on Friday, the price of bonds fell (as interest rates increased), causing some portfolios to lag.

How the market finished last week, the S&P 500 up 3.1%, the Nasdaq up 3.6%, and the Dow up 3.1%.

This Week: The main event of the week will be the Federal Reserve meeting, which is expected to see the first rates increase in 12 months. Since the dollar has already rallied hard into this news, the Fed will have to be quite hawkish to keep the move going. The Bank of England also meets this week, but is not expected to change policy. Sterling watchers will also be keeping a close eye on the unemployment, CPI and retail sales numbers. We also get flash PMIs from the eurozone and US.

Equity markets continue to set record highs and the indicators say this rally could last a couple more weeks. But too much optimism can be an uncomfortable thing.

Economic Calendar: Import and Export Prices (12/13), PPI-FD (12/14), Retail Sales (12/14), FOMC Meeting (12/14), Consumer Price Index (12/15) 

Some of the major earnings announcements on deck: ORCL, PAY, NDSN, ADBE.

$tockMarketDirection proprietary model is currently BULLISH. 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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