S&P 500 Index (SP500)

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Jeffrey Saut: The call for this week

* January 19, 2016

Assassins, hunters, and rabbits . . . oh my

Both the SPX and INDU did not close below their respective August closing lows, so what we have according to Dow Theory is a downside non-confirmation; and stocks are very oversold. Look for some kind of rally attempt this week. This question remains, “Will it be just a 1.5 – 3 session affair, or something more?” This morning it is looking like “something more” as China’s weak economic data bring on hope of more stimulus and Iran’s pledge to produce 500,000 barrels of crude oil per day didn’t rattle the oil market, leaving the February future contract up 1.6% this morning. Accordingly, the S&P 500 futures are better by 30-points at 5:30 a.m. But the question remains, “Is it just another one of these 1.5 – 3 day affairs or something more?”

http://www.raymondjames.com/inv_strat.htm

• George.

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