The S&P stock index futures this week hit another record high. There are no early, strong technical clues that a market top is close at hand. However, nobody can argue this is a very mature bull market run. There is bearish technical divergence showing up on the Directional Movement Index (DMI). See on the daily bar chart for the March S&P futures that the blue ADX line hit a new high recently, but then turned down while at the same time the S&P index went on to post a new high. This is called bearish divergence and is what I would call a minor technical signal of a potential market top being in place. Stay tuned!–Jim
Daily Morning Report
Market Concerns Growing Regarding U.S. Government Shutdown
Thursday, January 18–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mixed overnight. U.S. stock indexes are also pointed toward narrowly mixed openings when the New York day session begins.
There are growing concerns in the marketplace regarding a potential U.S. government shutdown starting this weekend, as U.S. lawmakers cannot agree on a budget. This worry has limited buying interest in equities.
World Equity Markets, U.S. Dollar Rebound Wednesday
Wednesday, January 17–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mixed overnight. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins.
The key outside markets on Wednesday morning see the U.S. dollar index higher on a corrective bounce after hitting a 3.5-year low earlier this week. The greenback bears still have the solid overall near-term technical advantage, to suggest more pressure in the near term.
Meantime, Nymex crude oil prices are weaker on some more profit taking after hitting a three-year high of $64.89 a barrel on Tuesday. The oil bulls are technically strong to suggest still more gains in the near term.
U.S. Dollar’s Slump Intensifies; Commodity Bulls Cheered
The U.S. dollar index is a basket of six major world currencies weighted against the greenback. The USDX has just dropped to a new 3.5-year low. The U.S. dollar bears are in strong near-term technical control, to suggest more downside price pressure is coming. The weakening dollar is a significantly bullish element for many major raw commodity markets, as those markets are priced in U.S. dollars on world markets. When the greenback weakens, its makes those commodities less expensive to purchase in non-U.S. currency–meaning increased worldwide demand for them. Stay tuned!–Jim
World Stock Markets Remain in Rally Mode Amid Economic Optimism
Tuesday, January 16–Jim Wyckoff’s Morning Markets Report
OVERNIGHT DEVELOPMENTS
World stock markets were mostly higher overnight, boosted by increasing optimism on global economic growth. Along with that specter come tighter monetary policies from the world’s major central banks. U.S. stock indexes are pointed toward solidly higher openings and new record highs when the New York day session begins.
Gold prices are firmer and hit a four-month high overnight, while Bitcoin prices are plunging again early this week and hit a four-week low overnight.
Gold Market Bulls Are Snorting as Prices at 4-Month High
February Comex gold futures surged to a four-month high Friday. Prices are in a steep uptrend on the daily bar chart and the bulls have the technical power to suggest more upside action in the near term. A weakening U.S. dollar index and rallying Euro currency are working to boost the yellow metal. Stay tuned!–Jim
