Stocks Cut Resistances Like a ‘Hot Knife Through Butter’ Finishing at New Record Highs Again

Stocks Cut Resistances Like a ‘Hot Knife Through Butter’ Finishing at New Record Highs Again

$DIA $SPY $QQQ, RUTX, $VXX

FLASH: US Stock Market Indexes Finish at Record Highs Again, The Trump Effect is Working

Traders and investors are focused a Fed that is expected to cut its benchmark interest rate later this month for the 1st time in more than a decade to help counter slowing economic growth caused by various trade disputes. Investors are betting heavily that the Fed is moving that direction, moving stock and bond yields higher in the last 2 weeks.

Bond yields have been moving higher for several days, a sign that investors have become more confident that the US economy will continue to grow, at least for the next several months.

Wednesday, Fed Chairman Powell told Congress that many Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut.

The yield on the benchmark US 10-yr T-Note was 2.12% compared to the multi-year low of 1.95% the bond hit 10 days ago.

In our view, the Fed will cut rates by at least a quarter of percentage point, market expectations range from 90 – 100%,

Investors are preparing for the start the Q-2 earnings season. Major U.S. banks will start reporting their results on Monday, starting with Citigroup. JPMorgan Chase, Wells Fargo and Goldman Sachs will report their results Tuesday. Are you ready for this earning’s season?

Friday, the major US stock market indexes finished at: DJIA +243.95 at 27332.03, NAS Comp +48.10 at 8244.14, S&P 500 +13.86 at 3013.77

Volume: Trade on the #NYSE came in at 671-M shares exchanged.

  • NAS Comp +24.3% YTD
  • S&P 500 +20.2% YTD
  • DJIA +17.2% YTD
  • Russell 2000 +16.4% YTD

HeffX-LTN’s overall Key technical indicators for the major US stock market indexes are Very Bullish, support is strong and resistance is little to none) for the week ended 12 July 2019.

Have a terrific weekend

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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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