U.S. Equity Markets ended the week on a high note, finished the day higher, with the S&P and Dow both closing higher by 1.37%. Even though Coronavirus cases are still an area of concern, National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci said COVID-19 “won’t be a pandemic much longer,” thanks to recent vaccine progress. In terms of economic data, Consumer Sentiment unexpectedly fell in November. The “expectations” index weighed on sentiment, with many respondents citing rising COVID-19 cases as a reason for the pessimism. The Dow Jones Industrial Average outperformed on Friday, as investors resumed their rotation out of high-flying stocks and into value stocks. European Indices also ended the week in positive territory. Euro-Zone Preliminary Third-Quarter Gross Domestic Product data were in line with expectations, indicating a record rebound prior to recent lockdowns. European Central Bank President Christine Lagarde said while she is optimistic about recent Coronavirus vaccine news, she is worried about near-term economic output. French Prime Minister Jean Castex said he would not give into pressure after Coronavirus infections eased by ending the country’s 30-day lockdown early. ECB Governing Council Member François Villeroy de Galhau said the central bank will adjust its monetary policy in December to combat low inflation and weak economic activity. Elsewhere, Oil closed 2.36% lower on continued demand concerns as COVID-19 cases rise, while Gold closed 0.67% higher on Dollar weakness.
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The S&P 500 closed 1.36% higher at a price of 3585.
The Dow Jones Industrial Average closed 400 points higher for a 1.37% gain at a price of 29,480.
The NASDAQ 100 closed 0.94% higher a price of 11,937.
The Stoxx Europe 600 Index closed 0.5% higher
The MSCI Asia Pacific Index rose 0.4%.
Last Friday, the Nikkei closed 0.53% lower at a price of 25,385.
The Bloomberg Dollar Spot Index closed 0.3% lower.
The Euro closed 0.3% higher at $1.1835.
The British Pound closed 0.5% higher at $1.3198.
The Japanese Yen closed 0.5% higher at 104.60 per dollar.
The yield on 10-year Treasuries closed two basis points higher at 0.90%.
Germany’s 10-year yield closed one basis point lower at -0.55%.
Britain’s 10-year yield closed one basis point higher at 0.34%.
The Bloomberg Commodity Index closed 0.3% higher.
West Texas Intermediate closed 1.25% lower at $39.98 a barrel.
Gold closed 0.67% higher at $1881 an ounce.
This morning on the Economic Front we have no data of note from either the UK or the Euro-Zone. At 1.30 pm we have the New York Empire State Manufacturing Index. Finally, at 8.00 pm we have a speech from Fed Member Clarida.
December S&P 500
The S&P have a positive end to the week closing over the key 3550 resistance area with a 1.36% gain at 3582. This is encouraging as I am now looking for a test of last Monday’s 3667 inta-day high over the coming days. Internally the market was strong on Friday with the McClellen Oscillator closing 90 points higher at +131. Meanwhile the VIX continued its recent correction, closing 9% lower at 23.10. One word of caution is that Sentiment levels are at their most bullish since 2017. I will now raise my buy level to 3567/3583 with a 3552 ‘’Closing Stop’’. If I am taken long I will have a T/P level at 3596.
I am still flat the Euro as the market broke and closed over 1.1820 on Friday. I will now raise my buy level to 1.1760/1.1805 with a 1.1712 wider stop.
December Dollar Index
I am still flat the Dollar and today I will lower my buy level to 91.80/92.40 with a lower 91.35 stop.
The DAX reversed Thursday’s aggressive sell-off on Friday, closing 200 points higher at 13125. I am still flat and I will now raise my buy level to 12950/13030 with a higher 12865 stop. I still do not want to be short the DAX at this time.
My 6255 long FTSE position worked well with the market trading higher to my 6290 T/P level and I am still flat. The FTSE closed higher at 6330 on Friday as speculation continues that the UK may exit its latest lockdown earlier than December 2nd. The FTSE has support from 6230/6280 where I will be a buyer with a 6185 stop. If I am taken long I will have a T/P level at 6325.
Dow Rolling Contract
The Dow rallied 400 points as Thursday’s 28905 late low print continues to hold. This is key support. I am still expecting a test of last Monday’s intra-day high at 29963 to be tested in the coming days. I will now raise my buy level to 29170/29370 with a 28875 wider stop. The Dow has resistance from 30100/30300 where I will be an aggressive seller with a 30455 ‘’Closing Stop’’.
I am still flat and today I will raise my buy level to 11750/11850 with a higher 11645 stop. If I am taken long I will have a T/P level at 11930. I still do not want to be short the NASDAQ at this time.
No Change as I am still a small buyer on any dip lower to 173.80/174.30 with the same 173.25 stop.
Gold Rolling Contract
I am still flat and today I will raise my buy level slightly to 1843/1857 with a higher 1829 stop.
Silver Rolling Contract
I am still flat and I will now raise my buy level to 23.50/24.10 with a higher and tight 22.95 stop. If I am taken long I will have a T/P level at 24.55.