Market Direction Weekly Closing Numbers©

Market Direction: BULLISH alert issued 11/10/2016

The economy

The stock market took a breather after three weeks of solid gains. The S&P 500 surrendered 1.0% for the week while the Nasdaq Composite continued its recent underperformance, falling 2.7%. It is worth noting that the blue chip Dow Jones Industrial Average (+0.1%) eked out a slim gain, logging its fourth consecutive weekly advance.

The outperformance of the Dow has been a common theme since the election as market participants piled into stocks of companies that are expected to benefit from increased infrastructure spending. A portion of the gains in growth-sensitive areas has come at the expense of technology stocks, leading to relative weakness in the Nasdaq. In addition, there has been some speculation that the immigration policy of the next administration could make things a bit more difficult for tech employees to obtain work visas in the US.

The trading week was highlighted by OPEC securing an official agreement to lower production to 32.5 million barrels per day after months of speculation about the likelihood of an agreement being struck. Crude oil responded by rallying into the area of its 2016 high (51.93).

With oil returning to its best level of the year, the energy component is now in position to contribute to an uptick in inflation expectations. Those expectations have already seen a notable uptick since the election as participants piled into stocks that should benefit from infrastructure spending. The 10-yr note registered its fourth consecutive weekly loss, driving its yield up to 2.39% after marking a 17-month high at 2.49%.

On Friday, investors received the November Employment Situation report (178,000; Briefing.com consensus 180,000), but the release did little to change rate hike expectations even though average hourly earnings declined 0.1% (Briefing.com consensus 0.2%). The fed funds futures market remains all but convinced (94.9%) that a rate hike will be announced on December 14.

$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.

By the numbers the weekly closing index numbers compared to the initial BULLISH recommendation closing numbers: 

Stock Market Closing Numbers
compared to Recommendation Numbers
	11/10/2016	12/2/2016	Difference
Dow Jones	18,807.88	19,170.42	362.54
Nasdaq	5,208.80	5,255.65	46.85
S&P 500	2,167.48	2,191.95	24.47

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