Craig Johnson’s

Financial Markets Summary

Thursday, February 15, 2018

  • After recording a low on Friday, the stock market has rallied each of the last three days retracing nearly 50% of the decline from an intraday high to the intraday low prior to this week’s advance.
  • A 50% retracement is one of the first resistance levels for the market to move through. In the coming days, the stock market will provide which direction is next.
  • As mentioned in the Monday newsletter, “If Friday’s low is the end of the first wave of selling, then typically a significant bounce higher retracing about two-thirds of the decline takes place followed by the last wave down which tends to undercut the low in the first wave of selling. No one knows yet if this will occur or not this time.”
  • Gold had a strong week rallying more than 3%. Gold has moved back into the area of resistance which has existed since July 2016. That window is between $1350 - $1380. Gold closed yesterday just above $1355 an ounce.
  • The price of oil seems to have stabilized around the $60 a barrel level after a sharp decline over the past couple of weeks from just above $66.
    
 

Sources: bankrate.com, bloomberg.com, Dow Jones News, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, individual company web sites and press releases.

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.

 

 

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