Market Direction: BULLISH alert
issued 11/10/2016
Last Week Review: Stocks were mixed on the week as the Dow was higher, the S&P 500 was flat, and the NASDAQ was lower. Driving most of the market's action was the Federal Reserve and several other important economic data reports. The Federal Reserve raised short-term interest rates while also laying out its plans to reduce the size of its $4.5 trillion balance sheet, and disappointing retail sales and inflation data caused interest rates to fluctuate more than average.
Despite the Fed's measured approach to tightening monetary policy, we believe the ongoing bull market for stocks can continue, supported by the growing economy, rising corporate earnings, and the relatively favorable interest rate environment.
Last Week Review: Stocks were mixed on the week as the Dow was higher, the S&P 500 was flat, and the NASDAQ was lower. Driving most of the market's action was the Federal Reserve and several other important economic data reports. The Federal Reserve raised short-term interest rates while also laying out its plans to reduce the size of its $4.5 trillion balance sheet, and disappointing retail sales and inflation data caused interest rates to fluctuate more than average.
Despite the Fed's measured approach to tightening monetary policy, we believe the ongoing bull market for stocks can continue, supported by the growing economy, rising corporate earnings, and the relatively favorable interest rate environment.
How
the market finished last week, the S&P 500 up 0.1%, the Nasdaq down 0.9%,
and the Dow up 0.5%.
This Week: After another record high and a
largely expected Fed rate hike, consolidation and modest profit taking at
quarter-end is certainly no surprise.
A
quiet week awaits, by and large, with the big events of the month mostly out of
the way. Perhaps the only real events to keep a watch for will be the weekly
crude figures, followed by the flash eurozone data on Thursday afternoon
(confidence figures) and the flash purchasing managers index (PMI) from the
currency zone on Friday morning.
With
few earnings reports to watch and a very light economic calendar next week,
political events are likely to remain center stage. With the SPX virtually
unchanged for the week, more consolidation and/or modest profit taking for at
least the early part of next week would be consistent with the stock market’s trend.
Economic
Calendar: Existing Homes Sales (6/21), Leading Indicators (6/22), PMI Composite
Flash (6/23), New Home Sales (6/23)
Some of the major earnings announcements on deck: ADBE,
FDX, RHT, ORCL, WGO.
$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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