A short Morning Call

The Morning Call

12/16/14

The Market

           

            The indices (DJIA 17180, S&P 1989) got whacked again yesterday.  Apparently it was the continuing decline in oil prices that was the catalyst.  Surprisingly, Abe’s victory and a good industrial production number didn’t count.  However, the Market ended up in its most oversold position in sometime, so a bounce would not be unexpected.

            ***overnight, the Chinese manufacturing PMI fell into contraction territory (below 50.0).  And housing starts and building permits were just reported below expectations.

Both Averages busted through their 50 day moving averages.  Plus the Dow broke through its prior resistance (now support) level (now back to resistance).  The next support levels for the Dow are circa 16852 (200 day moving average) and 16232 (lower boundary of its short term uptrend).  For the S&P, it is 1945 (200 day moving average, 1904 (its prior resistance, now support level) and 1876 (the lower boundary of its short term uptrend.

            In other Markets, the TLT confirmed the break of the upper boundary of its intermediate term trading range and re-sets to an uptrend.  GLD got whacked but remained above the lower boundary of its long term trading range.