Expect Strong Earnings, Forward Expectations to Drive Markets to Record Highs

Expect Strong Earnings, Forward Expectations to Drive Markets to Record Highs

Expect Strong Earnings, Forward Expectations to Drive Markets to Record Highs

$DIA, $SPY, $QQQ, $RUTX

Wall Street’s longest Bull market rally is alive and well after last weeks healthy pull back and will continue to run North into the record territory.

Last week’s pull back action is not indicative of any fundamental changes in the economy or markets, and there is clear evidence a Key technical reversal in all of the major market charts.

Earnings season is in full swing , and that is the catalyst for the equity markets to trade back up to new all-time highs.

The market paused to refresh last week, that is very healthy action in a Bull run.

This the Bull market has a long way to run, but of course there will be backing and filling along the way.

Some other analysts are just as optimistic that the pull back has reversed and the Bull is up and running, Tuesday’s action attested to that.

White House economic adviser Larry Kudlow Sunday played down the US stock market pullback as normal action.

Big numbers, small percentages, we here at HeffX-LTN look at market action in percentages, not numbers.

“I think the background is very positive for the stock market and I think, as I said, corrections come and go and people should … stay very calm over these things, they are quite normal,” Mr. Kudlow  said on TV Sunday.

The DJIA dropped more than 800 pts Wednesday, which was fueled in part by worries over higher interest rates.

“The economy is in terrific shape. We are in an economic boom,” Mr. Kudlow said.

Mr. Kudlow also said President Donald Trump had some concern the Fed may be raising interest rates too fast but respected its independence.

The Fed has raised interest rates 3X this year as it seeks to prevent a vibrant economy from overheating.

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
16 October 2018 QQQ 177.22 Neutral (-0.21) 174.95 178.55
16 October 2018 DIA 257.92 Neutral (0.07) 257.91 259.65
16 October 2018 SPY 280.4 Neutral (-0.23) 279.14 282.06

Keeping America Great!

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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.

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