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Taking in today’s headline news, U.S. benchmarks finished impressively higher, apart from the Nasdaq which started the day trading in the green but ultimately closed in the red. Most remarkably, the Dow closed in record territory surpassing 30,829 while the small-cap Russell 2000 recorded a 3.98% gain. Yesterday’s Georgia runoff election results appear to be finalized with both Democratic candidates winning while over in D.C. today’s joint Congress session was disrupted by protestors who entered the Capitol Hill building. Another key development from today included the release of the December Federal Open Market Committee minutes which highlighted the Fed’s intent to keep rates steady while interest for expanding the purchase of long-term bonds was minimal. Major market movers today included JPMorgan Chase up 4.7% higher, Bank of America up 6.25%, Moderna up 6.48%, and Tesla which was up 2.8%. Globally, Asian markets were mixed while European markets closed unanimously higher. The SPY is retesting its recent highs and we continue seeing strong rotation from growth to value stocks. Until an additional breakout is maintained, our models are projecting SPY to trade in the range of $354-$380. The market could be prone to further corrections and the next level of support is set at $354. We encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Key U.S. Economic Reports/Events This Week:
ADP Employment Report (December) – Wednesday
Markit Services PMI (December) – Wednesday
Factory Orders (November) – Wednesday
FOMC Meeting Minutes (December) – Wednesday
Weekly Jobless Claims (1/2) – Thursday
Trade Deficit (November) – Thursday
ISM Services Index (December) – Thursday
Nonfarm Payrolls (December) – Friday
Unemployment Rate (December) – Friday
Average Hourly Earnings (December) – Friday
Wholesale Inventories (November) – Friday
Consumer Credit (November) – Friday
For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
10-Day Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, IWM. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $50.52 per barrel, up 1.18% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $32.38 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Gold
The price for the Gold Continuous Contract (GC00) is down 1.75% at $1920.20 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $182.33, at the time of publication. Vector signals show -0.16% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is flat, at 0.923% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.660% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $22.77 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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