DJIA Saw Resistance, Traded to the Bottom of Trading Range

DJIA Saw Resistance, Traded to the Bottom of Trading Range

DJIA Saw Resistance, Traded to the Bottom of Trading Range

$DJIA, $SPY, $QQQ, $VXX

The DJIA traded down 372.82 pts, Treasuries rallied the most since Brexit and volatility spiked up, as the indexes back off of all time highs profit taking.

Many pundits are declaring political aspects to this pullback, however, I have been expecting it for the past week, it is profiting taking and technical in nature, healthy in fact.

Major US stock indexes fell the most in 8 months, while the CBOE Volatility Index (VIX) rose the most since the UK voted to leave the European Union, ending the calm we have seen since 1 March as the indexes inched to record highs across the board.

The CBOE Volatility Index (VIX) 14.41, +3.76) rose 35.3%, but is still remains near 24 year lows

The 10-year Treasury yield sank toward 2.20% in its steepest decline since June. The spread between 10-year and 2-year yields narrowed to the flattest since before President Trump’s election.

The USD weakened to a mark last seen in November as expected, emerging-market equities capped a 7-day rally, and  Gold futures extended a rally to 6 days running.

  • WTI Crude Oil+0.80% at 49.05 bbl
  • Gold +1.76% at 1,258.1 oz
  • Copper-0.37% to 2.541 lb.

The S&P 500 Index remains 10% higher since the 8 November election and + 5.3% YTD.

Here are some Key events coming up, as follows:

OPEC’s internal Economic Commission Board meets in Vienna to discuss the market in preparation for the group’s formal meeting on 25 May. Data from Japan on Thursday will likely show the economy accelerated in the 1st 3 months of the year, posting a 5th straight Quarter of expansion. That would be the longest consecutive period of growth since Ys 2005-2006.

Wednesday, the US major stock market indexes finished at: DJIA -372.82 at 20606.93, NAS Comp -158.63 at 6011.23, S&P 500-43.64 at 2357.03

Volume: Trade on the NYSE was heavy with 1.16-B/shares changing hands.

  • NAS Comp +11.7% YTD
  • S&P 500 +5.3% YTD
  • DJIA +4.3% YTD
  • Russell 2000 -0.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (0.22) Bullish (0.25) Neutral (0.17) Bullish (0.25)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.22) Bullish (0.25) Neutral (0.17) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.22) Bullish (0.25) Neutral (0.17) Bullish (0.25)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.28) Neutral (-0.19) Bearish (-0.29) Bearish (-0.38)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

You must be logged in to post comments :  
CONNECT WITH