Wild Market Day as S&P Tested Support, Bounced, Finished Flat

Wild Market Day as S&P Tested Support, Bounced, Finished Flat

Wild Market Day as S&P Tested Support, Bounced, Finished Flat

$DIA, $SPY, $QQQ, $RUTX, $VXX

US stocsk climbed from their lows heading into the close led by gains in tech shares and a report that the Fed is reconsidering its rate hike strategy.

The S&P 500 finished flat to unchanged

Crude Oil off on concern that the rate of global economic growth has peaked at the same time central banks have scaled back stimulus.

We reported the Fed is considering whether to signal a wait-and-see approach to rate hikes at its upcoming meeting next month.

The report said Fed officials do not know what their next move on rates will be after December.

Traders have started to doubt the Fed will raise rates even once next year as economic growth falters.

Crude Oil continued to be a drag on financial markets, with WTI Crude Oil back to $51 bbl as OPEC ministers seek a deal to cut output.

Some of the main market moves

The KBW bank index is down almost 8% in 2 days to the lowest since September 2017.

FAANGs: Amazon (AMZN) Netflix (NFLX), Alphabet (GOOGL) and Facebook (FB) all rose.

Energy producers tumbled 2.6% as Crude Oil slumped to $51 a barrel.

The front end of the yield curve led US Treasuries higher, helped by a large block trade in 2-year futures

Traders pointed to a number of other catalysts for the renewed risk-off tone that’s gripping financial markets. Bank of Japan Governor Haruhiko Kuroda said economic risks from abroad could be severe, and the Fed’s Beige Book report showed fading optimism over growth prospects at US firms even as most districts continued to report a modest expansion.

Thursday, the major US stock market indexes finished at: DJIA 24,947.67 – 79.49, NAS Comp 7,188.86 + 21.83, S&P 500 2,695.95 – 4.11

Volume: Trade on the NYSE came in at 1.3-B/shares exchanged

  • NAS Comp +4.1% YTD
  • DJIA +0.9% YTD
  • S&P 500 +0.8% YTD
  • Russell 2000 -3.9% YTD

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

Date Symbol Price Technical Analysis Support Resistance
6 December 2018 QQQ 165.14 Bearish (-0.37) 162.80 166.85
6 December 2018 DIA 249.47 Bearish (-0.26) 244.40 252.96
6 December 2018 SPY 267.01 Bearish (-0.32) 265.08 269.62

 

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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