Market Direction Mid Week Update©

Market Direction: BULLISH alert issued 11/10/2016

If you are a follower who has stayed the course of this bullish alert and not jumped out of the stock market you should have some very nice gains. This bullish alert has being going strong for 15 weeks and counting there is nothing in our proprietary models that indicate a change in the current market direction is coming. Keep investing....

The Dow on Wednesday eked out a slight gain to log its best record-setting streak in three decades, but the broader equity benchmarks struggled as Federal Reserve minutes implied that the central bank is comfortable with raising interest rates “fairly soon.”

The Dow Jones Industrial Average DJIA, +0.16%  added 32.60 points, or 0.2%, to close at 20,775.60—its longest run of record closes since 1987, according to the Dow Jones data.

The S&P 500 index SPX, -0.11%  declined 2.56 points, or 0.1%, to finish at 2,362.82, dragged down by energy shares which fell 1.6% as oil prices CLJ7, +0.82%  tumbled.

The Nasdaq Composite Index COMP, -0.09%  shed 5.32 points to end at 5,860.63.

“A rate increase in March is most likely on the table even though the minutes don’t necessarily indicate that and it seems the Fed is prepping the market for it,” said Bob Pavlik, chief market strategist at Boston Private Wealth.

“Many” Federal Reserve officials indicated their support for raising rates if the economy continued to strengthen, according to the minutes of the Fed meeting earlier this month. But the transcript also showed a mood of uncertainty over President Donald Trump’s fiscal policy plans, which have been the biggest boost to stocks during the past few months.

The risks facing the U.S. economy are more in balance, allowing the Fed to gradually raise interest rates, said Gov. Jerome Powell to the Forecaster’s Club of New York.

Meanwhile, some analysts warned that the rally on Wall Street and overly complacent attitude among investors are creating a dangerous situation.

“Make no mistake, lowering taxes is truly pro-growth and will keep the strong undertone of growth moving ahead. This will, however, mean a tighter monetary policy. Although we recognize that rates are below normal, the fact is that when the tightening process begins, the ‘full speed ahead’ of climbing stocks will run into a brick wall,” said Peter Cardillo, chief market economist at First Standard Financial, in emailed notes.

$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, email us. Share with a friend.

The all-time highs since our initial recommendation to go LONG this market. Here is how the markets have performed:

Stock Market Direction Recommendation (11/10/2016)
Dow	up 1,973.71 points a 10.49% gain	2/22/17
Nasdaq	up 659.09 points a 12.65% gain	2/21/17
S&P 500	up 94.23 points a 9.19% gain	2/21/17

Related Link: http://www.stockmarket-direction.com/