weekly

U.S. equity markets are trading higher ahead of this morning’s U.S. Non-Farm Payrolls Report. Appetite for risk is up overnight which could spillover to the U.S. markets if the jobs number shows that the economy is improving.

U.S. equity markets are trading flat to lower ahead of this morning’s weekly jobless claims report. In addition, investors seem to be taking a non-committal approach in front of tomorrow’s U.S. Non-Farm Payrolls Report. The Forex markets indicate that investor sentiment is shifting back toward risk aversion which could pressure equity markets today.

VIX Daily Sell Signal: This is the daily chart of the VIX. I added 2 standard deviation Bollinger Bands to the chart. One way the market produces a market sell signal is when the VIX closes beneath the lower band as it did on January 11, and then it “rallies” to close above the lower Bollinger Band line. This area is circled on the chart.

The U.S. Dollar Index erased all of yesterday’s loss overnight and turned the main trend to up when it crossed a previous main top at 76.82. Traders are increasing bets this morning that the Fed will raise its key interest rate by at least a quarter-percentage point from near zero by June.

Shortly after the release of the U.S. Employment Report, the December E-mini S&P 500 rallied to a new high for the year at 1119.00 just short of a major 50% level at 1122.00. The subsequent break from 1119.00 found support at a short-term retracement zone at 1098.50 to 1093.50.

Investors continued to dump higher risk assets today triggering weekly closing price reversal tops in the December E-mini S&P 500 and the December E-mini NASDAQ. A follow-through break to the downside in both of these markets next week will confirm the reversal top and lead to the start of a 2 to 3 week break.

U.S. equity markets posted weekly closing reversal tops indicating the possibility of the start of a 2 to 3 week break. A worse than expected U.S. Durable Goods Report triggered today’s sell-off, but the high for the week was posted shortly after the Fed FOMC announcement on September 23rd. Investors are selling stocks on the belief that prices are too far ahead of economic conditions.

The U.S. Dollar posted a strong gain today and is now in a position to close higher for the week. A weekly closing price reversal could indicate the start of a 3 to 4 week rally. Investors are not too happy with the projected pace of the global economic recovery. Many cite yesterday’s action by the Fed as a sign that the recovery will be slow and labored.

U.S. equity markets finished lower for the week for the first time since this current leg of the rally began in early July. Concerns over stock valuations had been pressuring stock index futures all week as investors became concerned about corporate earnings keeping pace with lofty stock prices. Weak U.S.

RIL Q1 result may disappoint the market