Saturday 21 December 2019

Weekend update - US equity indexes

It was a bullish week for US equity indexes, with net weekly gains ranging from +2.2% (Nasdaq comp'), +1.6% (SPX), +1.4% (NYSE comp'), +1.2% (Trans), to +1.1% (Dow).

Lets take our regular look at five of the main US indexes


The SPX climbed for a fourth consecutive week, the 10th week of 11, breaking a new historic high of 3225, and settling +52pts (1.6%) at 3221. Weekly price momentum is on the high side. Note the black macd line at 74.536, the highest level since early Feb/late Jan'2018.

For now, there is simply zero sign of a short, never mind a mid or long term top. The remaining 5.5 trading days of 2019 offer little other than further algo-bot upward melt. Technically, the upper bollinger will be in the 3240/50s next week, and the 3250/60s in the final two days of the year/decade.

The 3300/400s are clearly viable by late Jan/Feb. From there, a 10% washout would bring the market back to old resistance - now first support, of around 3K. We have ten downside gaps to the mid/low 2900s.

Nasdaq comp'


NYSE comp'



All five US equity indexes settled net higher for the week

The Nasdaq comp' lead the way higher, with the Dow lagging.

The SPX, Nasdaq comp', Dow, and NYSE comp' broke new historic highs

YTD price performance:

The Nasdaq comp' is currently net higher for the year by +34.5%. The SPX is +28.5%, with the NYSE comp' +22.1%. The Dow is +22.0%, with the Trans lagging at +18.9%.

Looking ahead

It will be a short 3.5 trading day week. 

Earnings: none.


M - Durable goods orders, new home sales
T - Richmond Fed' manu'.  EARLY CLOSING 1pm

W - CLOSED for Christmas day

T - Weekly jobs, fed balance sheet (4.30pm)
F - EIA Pet' & NG reports, Rig count.

Final note

We have just 5.5 trading days left of the year and decade. Without getting into a review of 2019, it should be clear, things continue to become ever more crazy. Rates are low, set to be cut again in 2020, with the printers having already been spun up. Incredible.

For many, yours truly included, a little extra time off will be very welcome indeed.

If you value my work on Blogger and Twitter, subscribe to me.
For details/latest offers, see:

Have a good weekend

*the next post on this page will likely appear 5pm EST on Monday