Dow jones Rally resumed heading for 21170 and 21520

Dow jones technical analysis on 16 march 2017

Dow jones technical analysis on 16 march 2017

Dow jones after hitting target of 21170 retraced on profit booking and hit low near 20777. But traders are buying to every dip and rally still strongly intact. This reversal is strong and momentum indicators and oscillators once again signaling big upside move this major index. On upside expect 21170 as first target of this reversal move and then my next technical target will be 21520 for month of March 2017.

 

Daily closing above 21520 means super bullish rally with short covering for technical targets 22180 and 22540. Which quit possible and momentum is strong with liquidity in market!! Trump hope rally might survive month of March which quietly remain negative for markets!!

 

On downside 20777 support is very important for dow jones if get breached on daily closing basis then expect strong correction towards 20500 support. Below 20500 Dow will officially enter short term downtrend for bearish targets 20150 and then 19450.

US Market week ahead 27 Feb to 3 march 2017

Dow jones weekly outlook for 27 Feb to 3 march 2017

Dow jones weekly outlook for 27 Feb to 3 march 2017

#global #market #weekly: #djia closed with gain. Outlook super bullish and hit all bullish tgt for Feb 20100-20335-20550-20780.

S&P 500 weekly outlook for 27 Feb to 3 march 2017

S&P 500 weekly outlook for 27 Feb to 3 march 2017

#global #market #weekly: #spx closed with gain. Outlook super bullish and hit first super bullish tgt 2370 next tgt 2400+.

NASDAQ weekly outlook for 27 Feb to 3 march 2017

NASDAQ weekly outlook for 27 Feb to 3 march 2017

#global #market #weekly: #NASDAQ closed with gain. Outlook super bullish and underperforming hit given tgts 5715 and 5830.

US Markets year 2017 technical analysis

dow jones 2017 technical analysis

Dow jones yearly outlook-bullish trend for tgt 20950-22050

Dow jones industrial average index this week closed at 19885 with loss. This was first negative week for Dow jones after last week’s gains. This index is now in consolidation phase on weekly chart after strong Bull Run. Though outlook still bullish from short to long term view.

Dow jones index for 2017, remain bullish and buy on dips above 18880 support level. On upside my year technical targets for Dow jones are around 20950 and then above it 22050. Dow jones index weekly chart price trend is strong bullish and now consolidating before next major move. For this week, Dow jones index above 19630 will remain bullish and buy. Might test 19630 level and then move upward towards my short term targets of 20140 and then 20500.

 

S&P 500 2017 technical analysis

S&P 500 yearly outlook-above 2175 support remain buy tgts 2355-2460

S&P 500 index this week closed at 2274 with flat positive gains. This was second positive weekly closing for this major US index. S&P 500 weekly chart price trend and momentum both are strong bullish and price continuously seeing buy on major dips.

For 2017, S&P 500 technically remain strong bullish above major support of 2175. On upside my year’s technical targets comes around 2355 and above it next target will be 2460. Expect come correction and consolidation and then once gain momentum will resume in US markets for big upside targets.

From short term view, S&P 500 for this week, above 2235 remain buy on dips for targets of 2285 and then 2325.

 

nasdaq year 2017 technical analysis

NASDAQ yearly outlook-remain bullish expect tgts 5890-6350

NASDAQ this week closed at 5574 with gain. This was second strong weekly closing for this tech index. In last 2 weeks we saw rally from below 5400 to almost up to 5600. 200 points strong gains in 2 weeks reflecting underlying demand momentum in market.

For 2017, NASDAQ will remain bullish and buy on dips above major support of 5055 level. On upside 5890 is my first technical target for this index for 2017, above 5890 next target will be around 6350.

For this week, NASDAQ already achieved my January target of 5530 and given strong breakout above it and now will trend higher towards next technical target of 5660.

 

VIX year 2017 technical analysis

VIX yearly outlook-heading towards record low levels

VIX for year 2017, opened in bearish zone and trending lower towards technical targets of 7.2 to 5 levels. Weekly chart price trend and momentum both are very bearish and prices are trending lower in oversold state. This was second negative closing for vix and below 17 level, long term trend will remain on downside. Volatility will remain high but US market outlook might remain bullish for 2017 after analyzing VIX long term technical patterns.

US market weekly outlook for 9-13 Jan 2017

dow jones  index weekly outlook for 9-13 Jan 2017

Dow jones weekly-expect targets 20140 and 20500

DJIA index this week closed with gain. After last week correction and profit booking Dow resumed primary trend and heading higher. In last 9 weeks dow seen 2 negative and 7 positive weekly closing and rallied almost by 2000 points from low which is very significant suggesting underlying demand drive in US Market.

On upside my positional target zones are 20140 and then 20500. Above 20500, Dow once gain enter super bullish zone for big upside targets. From long term view, Dow jones is heading for 20950 and 22050.

 

S&P 500 index weekly outlook for 9-13 Jan 2017

S&P 500 weekly-almost hit target 2285 next is 2325

S&P 500 index this week closed with gain. after last week’s correction and consolidation, buyer are back in market and lifting index towards 2285 which almost hit this week with high of 2282. Above 2285, expect next target is at 2325.

Above 2325, S&P 500 index will enter super bullish trend same like we saw in December. For 2017, my S&P 500 index targets are 2355 and 2460. On downside 2235 is major support for month of January and above it every major dip will be buying opportunity.

nasdaq 30 index weekly outlook for 9-13 Jan 2017

NASDAQ weekly-hit 5535 target next is 5660

NASDAQ this week closed at 5521 with huge gains. NASDAQ also after last week’s volatility resumed uptrend and achieved its January swing target of 5535. Above 5535, next target is at 5660.

NASDAQ price trend and momentum both strong bullish and strong dollar is driving market crazy. From long term view, NASDAQ is heading higher towards my targets of 5895 and 6355.

vix index weekly outlook for 9-13 Jan 2017

VIX weekly-fresh breakdown hint target 9.34

VIX this week closed with loss. After last week’s bounce back, vix resumed long term downtrend and now heading towards target of 9.34. On upside 13.3 is major hurdle and below it vix will remain bearish and trend down.

On long term chart, vix is heading down towards targets of 7.2 to 5 but deeply oversold so expect sharp bounce back rallies ahead.

US markets January 2017 technical view

Dow jones above 19620 remain buy targets 20120 and then 20480

Dow jones above 19620 remain buy targets 20120 and then 20480

Dow Jones Industrial Average index this week closed at 19762 with loss. This was second weekly loss for this major index. After 7 weeks Bull Run market seen some profit booking and weak weekly closings but momentum still bullish and expect buying around support zones.

For January 2017, DJIA monthly outlook remain bullish above major support of 19620. On upside 20120 and then 20480 are major month resistance zones as well as positional target levels. If Dow break down below 19620 on daily closing basis then expect short term downtrend and sharp profit booking as well as fresh selling up to 19270 and then 18780 levels. These will be target zones if bearish trend starts.

Dow weekly chart price pattern as well as indicators are still bullish and suggesting upside for market in longer time frame.

 

S&P 500 Index above 2234 remain buy for January

S&P 500 Index above 2234 remain buy for January

S&P 500 Index this week closed at 2238 with loss. This was second weekly loss for this index. S&P 500 Index is seeing some profit booking after strong and one way rally from 2100 to 2280.

For month of January 2017, S&P 500 Index above 2234 will remain buy and accumulate for positional targets of 2280 and then 2320.

Daily closing below 2234 will be fresh breakdown signal and short term downtrend for S&P 500 Index. Below 2234, SPX future will head lower for targets 2190 and then 2145 in January series. As daily chart indicators are overbought we might see intermittent profit booking waves.

 

Nasdaq Composite below 5380 remain sell

Nasdaq Composite below 5380 remain sell

NASDAQ index this week closed at 5383 with loss. This was second weekly loss for this tech index. Nasdaq Composite closed at major support but trend is still strong bullish. Momentum is fizzled out on profit booking but index might take support on downside levels.

Nasdaq Composite January outlook remain bullish above 5380 for upside targets of 5515 and then 5615. These are positional swing targets for NASDAQ future is it sustain above 5380 on daily closing basis. If Nasdaq Composite breakdown below 5380 then that might be start of fresh downtrend in short term and medium to long term correction in us markets.

Nasdaq Composite below 5380 remain weak and absolute sell for breakdown targets of 5245 and then 5110. Daily chart price and indicators patterns are mixed. While weekly chart is with topping out patterns which is bearish signal for us markets.

 

VIX above 13.25 remain bullish targets for Jan. 15.5 And 17.2

VIX above 13.25 remain bullish targets for Jan. 15.5 And 17.2

INDEX CBOE VIX last week closed at 14.04 with gain. On weekly chart VIX is bottoming out means these are bad time or high volatile time for us market in 2017. For month of January, VIX has major resistance at 17.25 and below it will remain weak means strong rallies or upside for US market. But if it closes above 13.25 then expect upside levels of 15.5 and then 17.2 in this month of January 2017.

Wall Street looked set to open little changed on Thursday

reuters-Wall Street looked set to open little changed on Thursday, a day after the S&P 500 index suffered its biggest fall in two months, putting a damper on a post-election rally.

A report showed the number of Americans applying for jobless claims fell by 10,000 to 265,000 last week, indicating sustained strength in the labor market.

U.S. equities had been enjoying a rally since the presidential election in November on bets that Donald Trump would introduce tax cuts, deregulation and higher infrastructure spending that would spur economic growth.

Wall Street little changed

The near two-month rally has seen the three main Wall Street indexes rack up double-digit percentage gains, but has left some market participants nervous about a potential correction.

The S&P 500 index suffered its biggest one-day percentage drop on Wednesday, following weak housing data and losses in the technology sector. The triple-digit loss on the Dow pulled it further away from its march toward 20,000.

"The markets are trading in a full-blown holiday mood, with little direction on either side of the equation," Peter Cardillo, chief market economist at New York's First Standard Financial wrote in a note.

Dow e-minis 1YMc1 were up 3 points, or 0.02 percent at 8:30 a.m. ET, with 15,774 contracts changing hands.

S&P 500 e-minis ESc1 were up 1.5 points, or 0.07 percent, with 73,460 contracts traded.

Nasdaq 100 e-minis NQc1 were up 1.25 points, or 0.03 percent, on volume of 12,695 contracts.

The dollar index .DXY fell 0.37 percent on Thursday after a sharp rise this month.

U.S. crude prices were off 0.15 percent after data showed a surprise rise in U.S. inventories. [O/R]

Nvidia's (NVDA.O) shares fell nearly 3 percent to $106.06 in heavy premarket trading, setting the stock up for a second straight day of losses after short-seller Citron Research tweeted that the chipmaker's stock could fall to $90 in 2017.

Shares of Advanced Micro Devices (AMD.O), Nvidia's rival, were off 2.6 percent.

Cempra (CEMP.O) dropped 46.7 percent to $3.25 after the drug developer said the U.S. Food and Drug Administration rejected its antibiotic treatment for pneumonia.

US stocks headed for big gains in 2016

AP-In a year with no shortage of surprises and stomach-churning turns in the market, stock investors can feel pretty good about 2016.

Wall Street repeatedly bounced back from steep slumps, including the worst start to any year for stocks, the second correction for the market in five months and investor fears of a global slowdown. It also weathered plummeting oil prices and the surprising outcomes of Britain's vote to leave the European Union and Donald Trump's U.S. presidential election win.

US stocks headed for big gains in 2016

A turnaround in company earnings growth, more stable oil prices, a steadily improving U.S. economy and job market all helped keep the market on an upward trajectory. More recently, investor optimism that the Republican election sweep will usher in a bevy of business-friendly policies spurred the market to new heights.

"It's been the year of the unlikely happening, but the crazy thing about the unlikely happening is you would expect that to lead to big sell-offs, and we experienced the exact opposite," said J.J. Kinahan, TD Ameritrade's chief strategist. "The more things happened that were unlikely, the more we seemed to rally."

 

As of Tuesday's close, the Standard & Poor's 500 index, the broadest measure of the stock market, was on track to end the year with a gain of 11 percent after an essentially flat finish in 2015. Including dividends, the total return was 13.4 percent. That means if you invested $1,000 in an S&P 500 index fund at the beginning of the year you'd wind up with $1,134 at the end of the year.

Other major market indexes were also on course to post solid gains. The Dow Jones industrial average was headed for a gain of 14.5 percent, a surge that had the 30-company average flirting with crossing the 20,000 mark. The Nasdaq composite was on track for an 9.6 percent gain.

Small-company stocks trounced the rest of the market, however, especially since the election. The Russell 2000 index soared more than 21 percent in 2016.

Investors anticipate that smaller companies will benefit more from an improving U.S. economy than their larger rivals because they tend to do far more of their business domestically. They also have fewer ways to dodge taxes through overseas subsidiaries, so they'll have more to gain if corporate taxes go down, and they'll also have less to lose if trade frictions flare up.

For the most part, markets overseas also fared better than in 2015.

In Europe, Britain's market was headed for a 13.2 percent gain, despite jitters that rocked the market following the summer's "Brexit" vote to leave European Union. Indexes in Germany and France were on their way to gains of 6.8 percent and 4.6 percent, respectively. Japan's Nikkei was on track to eke out a gain of 1.8 percent, and Hong Kong's benchmark index was down 1.5 percent.

 

Few anticipated the kinds of gains for U.S. stocks this year in January, when the market kicked of the year in a deep slump that knocked the Dow, Nasdaq and S&P 500 into a correction, or a drop of 10 percent or more from their recent peaks. For the S&P 500, it was the second correction in five months.

Fear that an economic slump in China could spark a global economic slowdown and alarm as the price of crude oil fell below $30 a barrel to its lowest level in 12 years triggered the market slide. Weak U.S. economic data didn't help.

The downturn was a surprise to many investors. Few expected another market correction so soon, and the Federal Reserve's move in December 2015 to raise interest rates for the first time in nearly 10 years signaled to many that the U.S. economy was healthy.

By the end of March, the market had started to regain its footing. By April, it recouped its losses and continued to mostly head higher. Then, toward the end of June, investors got blindsided by the Brexit vote. That dragged the market sharply lower and sent investors piling into U.S. bonds.

The slide lasted only a couple of days, and once again the market headed mostly higher.

Throughout the summer and into early fall, stocks rode an encouraging wave of developments: The U.S. job market continued to post strong monthly gains. Consumer confidence strengthened. More companies began to report better earnings and revenue for the third quarter, snapping a losing streak of five quarters for S&P 500 companies, according to S&P Global.

 

 

And crude oil prices stabilized, holding above $50. An agreement by OPEC and other major oil-producing nations to cut production next year in an effort to mitigate a glut in global supplies helped support energy prices. U.S. benchmark crude remains far lower than it was in mid-2014, when it topped $100 a barrel.

The market jitters returned as the race between Trump and Hillary Clinton began to tighten, leading to a nine-day slump for stocks ahead of Election Day.

Wall Street had largely seen Clinton as more likely to maintain the status quo, while viewing Trump's polices as less clear. The billionaire's surprise win initially set off a sharp sell-off in Asian markets, signaling more pain for U.S. investors. But the opposite happened.

Global financial markets soon steadied and U.S. stocks kicked off a rally that extended well into December, driving the major U.S. stock indexes to record highs.

Investors are now betting that Trump and a Republican-controlled Congress will have a clear pathway to boost infrastructure spending, cut taxes and relax regulations that affect energy, finance and other businesses.

That agenda has flipped investors' priorities since the election away from defensive assets like bonds, utilities and phone companies, which traders had favored for much of this year, to financial, industrial and small-cap stocks.

It's also increased expectations of higher inflation and interest rates next year, which could make some fixed-income investments like bonds, less attractive.

The anticipation of higher interest rates led to a sell-off in bonds since the election that sent bond prices lower and drove up the yield on the 10-year Treasury note to the highest level in more than two years. The yield, which is used to set interest rates on many kinds of loans including mortgages, bottomed out at 1.36 percent in July and went as high as 2.60 percent in mid-December.

The move away from bonds, utilities and other safe-play assets is likely to continue as long as investors believe that Trump's economic policies will lead to economic growth and usher in higher interest rates.

"The investment landscape has changed due largely to the election," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "We're set up for equities."

December also saw the Federal Reserve boost its interest rate by a quarter-point. The central bank also signaled that it could begin to gradually raise interest rates as employment and inflation increase.

 

 

Even with the gains this year, market strategists say the current bull market, now in its seventh year, should continue, as long as company earnings continue to improve.

"As you look at 2017, the market is not cheap, so earnings have to grow, and they should grow," said David Chalupnik, head of equities for Nuveen Asset Management. "We have a year and a half to two years of the bull market left."

merry christmas 2016

merry christmas 2016

May the melody and spirit of the holidays fill your home with love and peace. I wish you all the best and happy New Year too!

Oil prices up on strong U.S. GDP

NEW YORK, Dec. 22 (UPI) -- Growth reported Thursday in the U.S. economy helped lift oil prices out of a hole after falling in response to reports of a build in crude oil stockpiles.

Oil prices meandered between weak losses and gains early Wednesday amid competing market narratives. Norway and Libya, a member of the Organization of Petroleum Exporting Countries exempt from a production cut deal, reported gains in crude oil production. Industry estimates from the United States, meanwhile, forecast a draw in crude oil inventories, suggesting some supply-side strains were easing.

Oil prices up

Oil prices turned lower, however, after the U.S. Energy Information Administration reported a larger-than-expected climb in crude stockpiles at 2.3 million barrels for the week ending Dec. 16.

Oil was trending lower in overnight trading Thursday, but moved up at the start of the trading day in New York following a report on U.S. gross domestic product for the third quarter. The price for Brent crude oil was up 0.8 percent to open the trading day at $54.85 per barrel. The U.S. benchmark price, West Texas Intermediate, was up 0.6 percent to start the day at $52.81 per barrel.

The Commerce Department reported GDP in the third quarter grew at a revised 3.5 percent in the third quarter, up from the previous estimate of 3.2 percent and more than twice the rate reported during the second quarter of the year.

Corporate profits increased $117.8 billion in the third quarter, compared with a decrease of $12.5 billion in the second quarter. The strengthened economy could support greater demand in the U.S. economy, but add support to more aggressive rate policies from the U.S. Federal Reserve.

A report from the Colorado Office of State Planning and Budget said aggressive rate policies in the past were met by a rise in the value of the U.S. dollar, which weighed on industrial production and global growth during 2015 and early 2016.

Federal Reserve propels markets higher

yahoo news-Europe's stock markets advanced Thursday and the dollar soared after the US Federal Reserve hiked interest rates as expected -- and signalled three more rises next year.

The news sent the dollar spiking to a near 14-year high against the euro, as the hawkish prospect of more rate increases cemented support for the greenback.

Shortly after midday, the European single currency tanked to $1.0405, the lowest level since January 2003.

Federal Reserve propels markets higher

The yield on 10-year US Treasury bonds hit the highest level since the summer of 2014, having already soared in the wake of Donald Trump's surprise election victory.

Trump unexpectedly won the US presidency in November with populist promises to protect US jobs, ramp up infrastructure spending and slash taxes.

"The market is whole heartedly embracing Trumpenomics and the idea that the US economy will be on fiscal steroids in the next few years. Rates will rise and the dollar will surge," City Index analyst Kathleen Brooks told AFP.

"In contrast, the eurozone is mired in problems including slow growth, low inflation and multiple political risks in Italy and France."

The London stock market meanwhile shifted into positive territory after the Bank of England held interest rates at a record-low 0.25 percent.

The British central bank said all nine policymakers agreed at a regular policy meeting to keep the rate on hold and to leave the amount of QE cash stimulus pumping around the economy at £435 billion ($543 billion, 521 billion euros).

In the eurozone, the banking sector bolted higher on expectations of swelling profits in Europe in the wake of the Fed news, dealers said.

"The main thing for Europe is the banks," said ETX Capital analyst Neil Wilson.

"Banking stocks (are) driving European bourses higher after the Fed hiked rates and yields pushed higher.

"Banks are really enjoying this Trump bump and the Fed's hawkish pivot."

There were broad gains in the eurozone, with Frankfurt and Paris stocks both adding 0.5 percent.

Frankfurt's top gainer Deutsche Bank jumped 4.35 percent to 18 euros.

The biggest winner in Paris was lender BNP Paribas, whose stock was up 3.5 percent at 60.64 euros.

Rivals Societe Generale and Credit Agricole added 3.1 percent and 2.5 percent, to stand at 47.37 euros and 11.83 euros respectively.

- 'Light at end of tunnel' -

"There could be no better news for the banking sector than higher rates," said London Capital Group analyst Ipek Ozkardeskaya, noting that the sector had struggled for years with the low global interest rate environment.

"They have seen their revenues squeezed (and) they had to increase their risk taking in order to secure tiny returns for their clients," she added.

"Now, finally, they can see the light at the end of the tunnel.

"Higher rates means higher margins, improved organic revenues, lower pressure. This explains the cheerfulness in the banking sector."

However, most Asian markets tumbled after the Fed announcement.

Investors were sent scurrying on the prospect of tighter borrowing costs as the US central bank positions itself for an expected jump in inflation.

- Key figures around 1230 GMT -

London - FTSE 100: UP 0.04 percent at 6,951.70 points

Frankfurt - DAX 30: UP 0.5 percent at 11,301

Paris - CAC 40: UP 0.5 percent at 4,794.10

EURO STOXX 50: UP 0.6 percent at 3,230.80

Tokyo - Nikkei 225: UP 0.1 percent at 19,273.79 (close)

Hong Kong - Hang Seng: DOWN 1.8 percent at 22,059.40 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,117.68 (close)

New York - Dow: DOWN 0.6 percent at 19,792.53 (close)

Euro/dollar: DOWN at $1.0426 from $1.0533 Wednesday

Dollar/yen: UP at 118.04 yen from 117.08 yen

Pound/dollar: DOWN at $1.2471 from $1.2559

Oil - West Texas Intermediate: UP 1 cent at $51.05 per barrel

Oil - Brent North Sea: UP 18 cents at $54.08

Dow jones outlook-after achieving 10625 heading for 20100

Dow jones futures technical analysis

Dow jones futures technical analysis

Dow jones industrial averages on last trading session closed at 19911 with gain. December Santa rally continues and Dow achieved my swing target of 19625. Fresh breakout above 19625 means next swing target of 20100 and we already saw high up to 19953 on last trading session.

 

If this week closing comes above 20100 then that will be super bullish signal for this index. Above 20100, my next targets as well as December resistance zones will be 20900 and then 21400+.

For short term traders, 19750 and 19600 are support zones as well as fresh buying levels with stop loss.

 

Dow jones weekly chart price trend and momentum both are strong bullish. Current momentum is very strong and expect big upside for this move. Weekly chart suggesting 20500 to 20900 as target zones from medium to long term view. Dow weekly chart support zones are 19700 and 19300.

Trump's market rollercoaster could end in recession

citywire-Donald Trump's shock election as US president has shaken up the outlook for shares next year and could plunge the US into recession by 2019, Legal & General Investment Management (LGIM) has warned.

Strategist Lars Kreckel said Trump's election had introduced more risk into stock markets, with the outlook for shares now looking much more volatile.

‘Consensus was moderate upside [in equity markets in 2017] but now the risk in both directions has gone up materially,’ he said.

trump recession

Equity markets [in 2017] are not going to be plus-5% over the year, it’s either going to be plus-15% or minus-15%, or both over the year.’

US earnings growth pre-election was slated to be 6% in 2016 but Kreckel’s forecasts bump this up to 8% based on Trump’s growth plan. Growth could reach 14% after Trump's 10% corporation tax cut, which would take the rate to 25%, is factored in.

However, Kreckel then factored in dollar appreciation of 10% that would reduce earnings growth back to 12% and higher corporate bond yields, which would bring it down to 10%.

However, he warned this 'short-term party' for stock markets could come to an abrupt end, with US recession a possibility in 2019.

LGIM economist Tim Drayson said Trump's tax-cutting, free-spending plans at a time of low unemployment, risked the US economy overheating, causing the Federal Reserve to hike rates and prompt 'a nasty downturn at the end of the decade'.

Drayson said that Trump’s plans were ‘radical’ but it remained to be seen how much change he could get past Congress. However, LGIM is still factoring in $100 billion of corporate tax cuts and another $100 billion in individual tax cuts at a cost of $2 trillion over 10 years.

‘The bigger the boom, then the larger the bust will be in 2019,' he said.

Not only will Trump’s plan overheat the economy, Drayson said it would also push the debt to gross domestic product (GDP) ratio up to ‘catastrophic’ levels.

‘If the economy overheats then the Fed will raise interest rates to slow the economy and that is a recession risk for 2019…but it could be worse,’ he said.

‘The tax cuts and spending plan are unaffordable…if we get a full Trump plan then we get a catastrophic widening of the budget deficit. The Trump plan would mean an explosive rise in debt to GDP.’

U.S. stock futures higher as Fed kicks off policy meeting

Investing.com - Wall Street futures pointed to a higher open on Tuesday, continuing the post-election rally, as the Federal Reserve (Fed) began its two-day meeting on monetary policy.
The blue-chip Dow futures rose 64 points, or 0.32%, by 7:00AM ET (12:00GMT), the S&P 500 futures gained 6 points, or 0.27%, while the tech-heavy Nasdaq 100 futures traded up 15 points, or 0.31%.

U.S. stock futures higher
Investors were preparing for the Fed’s policy decision out on Wednesday. According to Investing.com’s Fed Rate Monitor Tool, markets had fully priced in a rate hike by 25 basis points to 0.50%-0.75% in what would be its first increase this year and only the second since the 2007-2009 financial crisis.
With the interest rate hike considered by markets to be a done deal, market participants were likely to focus on the dot-plot that outlines policymakers’ expectations for the future path of interest rates as well as any remarks on monetary policy from Fed chair Janet Yellen in the press conference following the announcement and economic projections.


As the Fed meeting loomed, the dollar firmed up on Tuesday with the U.S. dollar index at 101.13 by 7:01AM ET (12:01GMT), recovering from its weakest day in a week.
Gold in the meantime slipped lower, trading at $1,160.55 a troy ounce by 7:02AM ET (12:02GMT), not far from the lows of $1,153.00 set on Monday, the weakest since February 4.
On a light day for the economic calendar, investors could focus on import and export prices for November out at 8:30AM ET (13:30GMT).


Meanwhile, oil prices moved higher on Tuesday as the International Energy Agency indicated in its monthly report that global crude inventories could start to draw in the first half of 2017 if OPEC and non-OPEC producers follow through on their agreement to cut output.
The IEA forecast global demand to increase at a quicker-than-anticipated pace.
U.S. crude futures rose 0.87% to $53.29 by 7:03AM ET (12:03GMT), while Brent oil traded up 1.04% to $56.27.

Dow jones Santa rally continues-watch targets 19625

Dow jones chart technical analysis

Dow jones chart technical analysis

Dow jones in last trading session set a really and closed at fresh high of 19549. Trump rally continues for US markets and we are seeing super bullish trend and new highs every days.

 

Dow future price trend and momentum both are strong bullish. My down jones December first swing target is at 19625 and we are near it.

 

Dow jones weekly closing above 19625 means fresh bullish breakout for my next target is 20095 for this December Santa rally.

 

Dow jones long term chart are suggesting 20000 to 20550 target zones for this long term Bull Run.Short and medium term charts indicators are bullish but overbought so keep strict stop loss for all long positions. If crash comes it will be deep and sharp.

Oversold VIX suggesting correction in US markets

VIX index chart analysis

VIX index chart analysis

VIX on last trading session closed at 11.79 with loss. Index is in downtrend and heading towards my level of 9. But on daily chart, VIX index is oversold and trading around bottom. On upside 16 is December major pivot resistance as well as target zone for bounce back rally. Above 16, VIX index will be bullish and buy.

 

This means in short term expect high volatility in US market and corrective downside for dow and S&P. weekly breakout above 16, means next targets of 19 and 26 for VIX index.

 

Dow jones closed at 19251 and on downside major support is at 18750. S&P 500 index last closed at 2204 with gain and on daily chart it have its major support at 2170.

US Stocks Are Mixed on Wall Street

NEW YORK — Stocks are wavering between small gains and losses in midday trading on Wall Street Tuesday. Energy companies slumped as the price of crude oil turned lower after a four-day rally. The Dow Jones industrial average slipped after setting a record high close the day before.

KEEPING SCORE: The Dow lost 7 points, or 0.1 percent, to 19,209 as of 12:10 p.m. Eastern. The Standard & Poor's 500 index rose 2 points, or 0.1 percent, to 2,207 and the Nasdaq composite was up one point, or less than 0.1 percent, to 5,310.

US Stocks Are Mixed

ENERGY: A rally in oil prices petered out after four days of gains driven by OPEC's deal to cut production next year. Benchmark U.S. crude fell $1.06 to $50.73 in New York. Brent crude, the international standard, shed $1.05 to $53.89 a barrel in London. Among energy stocks, pipeline operator Kinder Morgan and Devon Energy each fell 1 percent.

STARVING: Chipotle Mexican Grill fell $29.34, or 7 percent, to $366.70 after the company's CEO said he was "nervous" about hitting full-year forecasts and that the company's turnaround is going slower than expected. Chipotle has struggled since an E. coli outbreak last year caused customers to eat elsewhere.

 

AIR TRUMP ONE: Boeing shares fell 95 cents, or 0.5 percent, to $151.21 after President-elect Donald Trump said he believed the U.S. government should cancel its order for a new Air Force One plane, claiming the project is too expensive. The Air Force has not contracted out the new Air Force One plane, due in 2021, yet. However Boeing does have a $170 million viability contract with the Air Force to determine the capabilities of the next version of Air Force One.

 

EUROPE: Italy's stock market jumped 4.2 percent, a day after slipping in the wake of the failure of a constitutional referendum that forced the resignation of that country's premier. France's CAC 40 added 1.3 percent, Britain's FTSE 100 was up 0.5 percent and Germany's DAX rose 0.8 percent.

BONDS AND CURRENCIES: U.S. government bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.39 percent from 2.40 percent late Monday. In foreign exchange trading, the dollar rose to 114.01 yen from 113.75 yen. The euro fell to $1.0704 from $1.0770.

U.S. Stock Futures Gain After Italian Vote Result

benzinga-U.S. stock futures traded higher in early pre-market trade, as Italian Prime Minister Matteo Renzi vowed to resign after a defeat in a referendum on constitutional reforms. New York Federal Reserve President William Dudley is set to speak in in New York at 8:30 a.m. ET, while Chicago Federal Reserve Bank President Charles Evans will speak in Chicago at 9:11 a.m. ET. US Services Purchasing Managers' Index for November is schedule for release at 9:45 a.m. ET. The ISM non-manufacturing index for November and the Labor Market Conditions Index for November will be released at 10:00 a.m. ET. St. Louis Federal Reserve Bank President James Bullard is set to speak at the Arizona State University, W.P. Carey School at 2:05 p.m. ET.

Wall Street Premarket

Futures for the Dow Jones Industrial Average climbed 72 points to 19,230.00, while the Standard & Poor’s 500 index futures gained 7.50 points to 2,199.50. Futures for the Nasdaq 100 index surged 20.50 points to 4,759.00.

Oil prices traded higher as Brent crude futures gained 0.44 percent to trade at $54.70 per barrel, while US WTI crude futures also rose 0.35 percent to trade at $51.86 a barrel. The Baker Hughes North American rig count report for the latest week November is schedule for release at 1:00 p.m. ET.

 

A Peek Into Global Markets

European markets were higher today, with the Spanish Ibex Index rising 0.50 percent, STOXX Europe 600 Index climbing 0.63 percent and German DAX 30 index gaining 1.36 percent. The UK's FTSE index was trading higher by 0.20 percent, while French CAC 40 Index climbed 1.01 percent.

In Asian markets, Japan’s Nikkei Stock Average fell 0.82 percent, Hong Kong’s Hang Seng Index declined 0.26 percent, China’s Shanghai Composite Index dipped 1.21 percent and India’s BSE Sensex gained 0.45 percent.

Will Santa deliver his Market rally ?

usa today-It’s December, and that means talk of a “Santa Rally,” talk of coming gains for small-company stocks (better-known as the “January Effect”) and talk of what’s next for the stock market in 2017 will dominate the airwaves. (And don’t forget the "Trump Rally," which will be a hot topic, too.)

After a strong November -- when the Dow Jones industrials gained nearly 1,000 points (it has only rallied 1,000-plus points in a single month four times in its 120-year history, according to The Stock Trader’s Almanac) -- December comes with high expectations.

santa rally

December ranks No. 1 in monthly performance since 1950 for the Standard & Poor’s 500 stock index, which puts seasonality on the market’s side, according to Almanac editor Jeffrey Hirsch. Also working in the market’s favor is the psychological boost of “holiday cheer,” and signs of “better, (but) still not great” economic times witnessed by the government bumping up third-quarter U.S. growth to 3.2%.

 

Since 1969, the Santa Rally (it runs Dec. 23 thru the second trading day of the new year) has produced average gains of 1.5%, Hirsch says. The January Effect, a phenomenon where small-cap stocks rally early in the new year -- but which now starts in mid-December -- also provides hope.

 

But Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, warns that the Dow’s surge and small-cap Russell 2000 stock index’s 11% gain in November may signal that Santa “is early this year” and the gift-giving to investors is over.

NASDAQ monthly-5265 is critical support zone

NASDAQ December 2016 outlook

NASDAQ December 2016 outlook

NASDAQ index on last trading session closed at 5255 with heavy loss. NASDAQ in now entered into bearish trend and closed below major pivot support of 5265.

 

NASDAQ futures below 5265 remain weak and sell on rise. On downside 5125 and 4895 are support zones as well as target zones for this bearish moves. Though daily chart indicators approaching oversold zones, I expect NASDAQ downside up to 5125 and then strong short covering rally in month of December.

 

On weekly closing above 5265, expect trend reversal and upside short to medium term targets for NASDAQ at 5495 and then 5635.

From long term view, NASDAQ is facing strong resistance at 5415 which was its first long term target. But is in strong bullish trend. Watch for breakout above 5415 on weekly closing basis and expect next long term target at 5795.

S&P 500 monthly-expect targets 2250 and then 2295 for December 2016

S&P 500 December 2016 outlook

S&P 500 December 2016 outlook

S&P 500 index on last trading session closed at 2191 with loss. S&P 500 price trend and momentum for month of December is bullish. On downside 2165 is major pivot support and above it traders must keep buy on dips strategy.

 

For month of December 2016, my S&P 500 futures targets are 2250 and then 2295. In short term expect some correction and consolidation and then primary trend will resume. Weekly closing below 2165, will alter trend and major correction phase will start. In that scenario, S&P 500 future might show lower levels up to 2120 and 2040.

 

From medium to long term view, S&P 500 future above 2170 remain bullish and buy for my long term target of 2287.