Forefathers Friday, page-2

Overnight Markets:

America continues to consolidate at its highs. Dow Jones +0.23%, SP500 +0.2%, Nasdaq +0.06%, NYA +0.40%, Banking +1.25%. London +1.05%. Dow Jones remains very overbought with an RSI at 76.5.

The Technology Sector was weak -0.2%. Other weak sectors were Consumer Staples -0.07%, Health -0.22%, Utilities -1.19%. This looks like a rotation out of defensives in preparation for a Santa Rally.

Yale Hirsch, the editor of the Stock Trader’s Almanac, is credited with creating the term “Santa Rally” back in 1972. His definition: “… the last five trading days of the year plus the first two of the New Year.” According to his definition, the Santa Rally should start on Friday of this week in America, and finish on Wednesday, 3 Jan. 2018.

SP500:



SP500 was up a little +0.2%. The trend channel is now sideways. The middle of the trend channel might provide support.

CCI is showing a negative divergence. It usually proves correct if a little early.

RSI is overbought at 70.8. In this bull market, concerns about a pull-back arise once RSI gets over 80.

Commodities:

DBC +0.06%. Energy +0.14%. Industrial Metals +0.67%. Copper Producers +2.07%. Gold +0.14%. Iron Ore +1.1%.

BHP and RIO were both up strongly in London and New York so the miners will probably lead our market higher today.