[MM_Member_Data name=’firstName’],

U.S. markets traded mostly higher ahead of this week’s central bank decision from the Federal Reserve along with overseas outcomes also expected from the Bank of England and the European Central Bank.

The Dow and S&P 500 failed at clearing all-time peaks but did set new closing highs after rising 0.3% and 0.2%, respectively.

The Nasdaq showed the most strength after gaining 0.5% to extend its winning streak to four-straight. Meanwhile, the Russell 2000 opened higher but struggled holding positive territory throughout the session before closing 2 points lower, or 0.1%.

Technology and Energy were sector standouts after advancing 0.9% and 0.8%, respectively.

Financials and Industrials were down 0.3% and 0.2% with Consumer Staples the only other sector finishing lower after pulling back 0.02%.

Global Economy- European markets settled mostly lower despite the Basel III announcement with rules and regulation surrounding the banking sector not as restrictive as initially thought.

UK’s FTSE 100 was higher by 0.8% while France’s CAC 40, Germany’s DAX 30 and the Belgium20 fell 0.2%. The Stoxx Europe 600 slipped 0.1%.

ECB Governing Council member Nowotny said that based on the the broad-based economic expansion they are seeing, growth prospects are looking up, not just at the global level but in particular the European level.

Asian markets closed to the upside following mostly positive economic news out of China and Japan. Hong Kong’s Hang Seng jumped 1.1% and China’s Shanghai rallied 1%. Japan’s Nikkei advanced 0.6% while South Korea’s Kospi climbed 0.3%. Australia’s S&P/ASX 200 inched up 0.1%.

China November new yuan loans rose 1.12 trillion yuan, stronger than expectations of 800 billion yuan. November aggregate financing rose 1.60 trillion yuan, stronger than expectations of 1.25 trillion yuan.

China November CPI rose 1.7% year-over-year, weaker than expectations for a rise of 1.8%. November PPI rose 5.8% year-over-year, matching expectations.

Japan Q4 BSI business conditions rose 1.1 to a 2-year high of 6.2, stronger than expectations form a gain of 0.7 to 5.8.

October JOLTS Job Openings checked in at 5,996,000 versus expectations of 6,1000,000. The rate slipped to 3.9% versus unchanged at 4% previously. Hirings surged 232,000 to 5,552,000. The hiring rate rose to 3.8% after dipping to 3.6% in the prior month, from 3.7% in August.

Market Sentiment- The iShares 20+ Year Treasury Bond ETF (TLT) made a run to $127.08 shortly after the open with lower resistance at $127-$127.25 holding. The fade to $126.41 afterwards and close below upper support at $126.50-$126.25 was a slightly bearish development.

Backup help is at $125.50-$125 and the 50-day moving average on a move below $126.


Market Analysis- The Spider Small-Cap 600 ETF (SLY) is trying to hold near-term support at $133.25-$133 and levels that have been solid since mid-November, for the most part.

There is risk to $132-$131.75 and the 50-day moving average on a move below $133. Resistance is at $134-$134.25 with continued closes above the latter being a slightly bullish signal.

RSI is trying to hold late October support at 50 with risk to 45-40 on continued weakness and a move below this level.


The Consumer Staples Select Spiders (XLP) is trying to hold early December support at $56.25-$56 with a close below the latter signaling additional weakness. Resistance is at $56.75-$57 with the recent 52-week and all-time high at $57.36.

The 50-day moving average is back in an uptrend after falling below the 200-day moving average that formed a death cross in early November.

This confirmed lower lows that followed and the eventual bottom near the $52.50 level. RSI recently peaked at 80 with near-term resistance now at 70. Continued closes above this level would be a slightly bullish signal. Support is at 65-60.


All the best,
Roger Scott