Tuesday Morning Chartology
The S&P remains in uptrends across all timeframes including a very short term uptrend. All that suggests that it will challenge 2300.
Friday’s selloff in TLT was its first major hiccup in a month; but the uptrend is firmly in place. That said, longer term it is below its 100 and 200 day moving averages and in a short term downtrend. The unusual technical aspect of this chart is that TLT has plenty of room to keep rallying before it challenges any of its major timeframes to the upside.
GLD has been diverging from TLT a bit lately. Still it is very similar---it bounced up off the lower boundary of its intermediate term trading range, faces major resistance from its 100 and 200 day moving averages and a short term downtrend but still has room to move up substantially before challenging those resistance levels.
The dollar’s chart remains the inverse of TLT---in a downtrend but with a lot of distance between its current price and any support. Notice that TLT bounced up off the lower boundary of its short term trading range to start its uptrend; while UUP bounced down off the upper boundary of its intermediate term trading range. (must read)
And (must read)
The VIX (11.2) continues to linger near the lower boundary of its intermediate term trading range (10.3)---a support level that dates back ten years. In other words, the 2007 top. Still it is below its 100 and 200 day moving averages and in a short term downtrend. The question is, what gives?
The Donald was busy this long weekend. In addition, to raining on Ryan’s border adjustment tax parade and talking down the dollar, he took a big shot at NATO and Germany (medium):
Merkel’s response (medium):
Saudis suggest that the oil production cut could end by mid-year (short):
UK PM says both houses of parliament will vote on Brexit (medium):
***overnight, the IMF raised its US GDP growth forecast for 2017 and 2018; January German investor confidence soared; UK inflation rose the most in 2 ½ years; EU auto sales hit a nine year high.
The latest from Goldman (medium):
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News on Stocks in Our Portfolios
Paychex (NASDAQ:PAYX) declares $0.46/share quarterly dividend, in line with previous.
This Week’s Data
The January NY Fed manufacturing index cam e in at 6.5 versus expectations of 8.0.
International War Against Radical Islam
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