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Replies to post #71702 on Abet Chichi2 (Chichi2)
12/10/18 10:03 AM
Moving on to the equity markets, except for the Utility averages, all of the other indices we monitor closed in the red last week. The reciprocal is that most of the commodities we monitor closed the week in the green. Of note is that the Advance – Decline Line remains near new highs (Chart 2, page 3) and that the real yield curve (3-month T’bills to the 30-year T’bond) is at levels that historically have been a “buy point” for stocks (Chart 3, page 3). The SPX has now had four tests of the October 29 low (Chart 4, page 4), which we deemed to be THE low, and our models continue to favor the upside. This morning, stock sell-off snowballs on world growth slowdown fears. How much will the French riots and Brexit/UK political turmoil impact markets today? If the S&P 500 low of 2621.53 from Thursday is breached, the index could tumble to 2600. The October low is 2603.54. The May low is 2594.62. The April low is 2553.80. The February low is 2532.69. More than one S&P 500 Index close below 2600 in a week would be extremely negative. The S&P 500 Index closed below 2600 for three times this year, but not twice within one week.
