• 48 mins Musk Takes To Twitter To Troll The SEC
  • 1 day Lunar Mining May Commence As Early As 2025
  • 2 days Immigration Will Go Bust Without $1.2B Bailout
  • 2 days The Economics Of The Space Race
  • 3 days Why The World's Central Banks Aren't Yet Sold On Renewables
  • 4 days How Much More Cash Can Uber Burn?
  • 4 days Inside The Biggest Counterfeit Gold Scandal In Recent History
  • 4 days EU-U.S. Trade Relations Are Deteriorating
  • 5 days Over 184 Companies Have Bailed On Facebook
  • 5 days BP Sells Petrochemical Business For $5 Billion
  • 5 days U.S. Moves To Secure Domestic Rare Earth Supply
  • 6 days E-Commerce Explodes As Boomers Go Digital
  • 6 days Major U.S. Cities Are Turning To Renewables
  • 7 days Economic Reopening Backfires, COVID Surge Snaps Recovery
  • 7 days How Are Low Car Sales Impacting The Metals Market?
  • 8 days Are Gold Stocks Still Undervalued?
  • 8 days Singapore's $3 Billion Oil Trading Scandal
  • 9 days Luxury Clothing Isn’t A Priority As Americans Grapple With COVID-19
  • 9 days Natural Gas Demand Hits 25-Year Low
  • 10 days Gold Inches Towards $1,800 As Investors Pile Into ETFs
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Major Indexes Testing Important Levels

Monthly Labor Report

All eyes will be on this week's monthly labor report. The report, which is due Friday at 8:30 am ET, may impact the outcome of the Fed's December meeting.

Economic Calendar

Friday's non-farm payrolls report will also impact how the major indexes act near areas of possible resistance. Use this link to see a larger version of the chart below as of Monday's close.

SOPX Daily Chart


Is The Bigger Picture Starting To Favor Lower Lows?

This week's stock market video looks at the market's current risk-reward profile in the context of Friday's late session sell-off and areas of possible resistance. The video also compares similarities and differences between 2011 and 2015.


Industrial Stocks Also Near Important Area

Like the S&P 500, the Dow Jones Industrial Average is near a possible inflection point. Stock market bears prefer to see the index rejected near the upper downward-sloping blue line. Stock market bulls are pulling for the "breakout" scenario this week. Use this link to see a larger version of the chart below as of Monday's close.

DOW Daily Chart


Investment Implications - The Weight Of The Evidence

There are three major scenarios facing the stock market:

  1. Rally on to new highs.
  2. Pullback, then rally to new highs.
  3. Weakness carries equities to new lows.

Based on the facts we have in hand today, the higher probability outcomes appear to be 1 and 2 above. While the new low scenario's probability is not zero, the weight of the evidence tracked by our market model favors bullish outcomes looking out several weeks/months. The previous sentences are subject to change if the data begins to deteriorate; something that has not happened yet in a meaningful way.

 

Back to homepage

Leave a comment

Leave a comment