US Stocks React to Overbought Market Conditions

US Stocks React to Overbought Market Conditions

US Stocks React to Overbought Market Conditions


US stocks retreated Thursday following the Asian and EU markets, with the S&P 500 Index giving up 1.5%, and a measure of market volatility was up, but still in Neutral mode.

US Treasuries rose with the Japanese Yen as investors sought havens, Gold rallied tapping at 1300 oz.

There is a rumor in the air that former Goldman Sachs President Gary Cohn would resign as head of the national economic council the the WH labeled as Fake.

Remember, always tune out the Noise!

Mr. Cohn is leading our President’s agenda on tax reform.

As I see this dip, the equity markets do not appear poised to crack in here. As the S&P 500 Index sits 2% below its all-time high reached 10 days ago and is consolidating that move.

The European stocks dropped as the minutes from the region’s last ECB (central bank) meeting revealed concern among officials that the currency could overheat.

Gold and Tin were among the best performing metals, and Zinc traded near a 10-year high.

Most European bonds edged higher as they tried to catch up to US yields. Sterling slipped after growth in UK retail sales declined.

Thursday, the US major stock market indexes finished at: DJIA -274.14 at 21750.73, NAS Comp -123.19 at 6221.90, S&P 500 -38.10 at 2429.97

Volume: Trade on the NYSE came in moderate to lite at: 767-M/shares exchanged

  • NAS Comp +15.6% YTD
  • DJIA+10.1% YTD
  • S&P 500 +8.5% YTD
  • Russell 2000 +0.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.44) Very Bullish (0.56) Bullish (0.38) Bullish (0.38)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (-0.15) Neutral (-0.08) Neutral (-0.17) Neutral (-0.21)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.19) Neutral (-0.13) Neutral (0.08) Very Bullish (0.62)
HeffX-LTN Analysis VXX: Overall Short Intermediate Long
Neutral (-0.05) Neutral (0.05) Neutral (0.19) Bearish (-0.38)

Stay tuned…

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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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