Financial Markets Summary
Thursday, February 9, 2017
- The low volatility in the stock market reflected by the S&P 500 has now reached 37 consecutive days where the range between the day’s high and the day’s low has been less than 1%. The longest streak in history. The last 1% intraday move was December 14. No predictive value exists for what typically follows the streak’s conclusion.
- The stock market has been moving through a sideways correction through stock and group rotation. It has seen the technology sector return with strength so far this year.
- The very extended positive sentiment that had existed earlier in the year has worked its way back to neutral with an amazing number of individuals and market pundits still looking for a market selloff at any moment. That type of anticipation is found far more often during a sustainable advance as opposed to when an actual market top is near.
- Earnings have dominated the financial news and while there are still many companies left to report, the number of reports will be dwindling in the coming weeks.
- Gold was successful in breaking above resistance at $1220 an ounce reaching as high as $1246 yesterday. The break above resistance targets the $1265 an ounce area where the next level of resistance resides. The short term trend is higher, while the intermediate and long term trends have been lower since late 2011.
- Oil has traded sideways for the past five weeks, but during that time it has stayed above support. Yesterday’s trading spent the day testing that support. If the support test is successful, oil’s next target is near $60 a barrel. It closed yesterday near $52.50 a barrel.
Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and 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.