06Jan2016 Market Close: Stocks Close To Waterfall Action, Crude At New Bottom, Gold Melting Up, Will Markets Open Higher Tomorrow?

Written by Gary

Markets closed down, but slightly higher than the opening. The DOW is down 252 points, the SP500 down 1.3%, WTI trading at $34 and the Fed’s report was Dovish. But then, when hasn’t the Fed been Dovish?

Certain aspects of short term indicators show the markets climbing into the green tomorrow, but will it happen?

Todays S&P 500 Chart

Spooz attempting to maintain the 2000 area. (From http://www.cfdtrading.com/)

If a short-term bounce is to develop this is critical…a close below support levels will significantly increase odds a broader leg lower towards summer/fall levels has already begun…

Click here to see larger image.

The Market in Perspective

Here are the headlines moving the markets.
	Apple shares drop below $100 for first time since August (Reuters) – Apple Inc shares on Wednesday dropped below $100 for the first time in nearly five months following reports of slowing shipments of its iPhone 6S and 6S Plus.
	House Democrats urge rejection of CP bid for Norfolk Southern WASHINGTON (Reuters) – Two senior Democrats in the House of Representatives urged federal regulators on Wednesday to reject any acquisition of railroad operator Norfolk Southern Corp by Canadian Pacific Railway Co.
	Wall Street adds to losses; energy weighs (Reuters) – U.S. stocks extended losses in late trading on Wednesday as energy shares dropped with oil prices and minutes from the last Federal Reserve meeting added to investor concerns about the economy.
	Fed raised rates even as inflation debate continued: minutes WASHINGTON (Reuters) – Federal Reserve policymakers decided to raise interest rates last month after almost all of them gained confidence inflation was poised to rise, but some voiced worries inflation could get stuck at dangerously low levels.
	Netflix now live in almost all countries, skips China (Reuters) – Netflix Inc’s video-streaming services went live in more than 130 countries on Wednesday, covering almost the entire globe except China, in a huge global push by Chief Executive Reed Hastings to counter slowing growth at home.
	Audi to raise share of electric cars to 25 percent of U.S. sales BERLIN (Reuters) – Audi aims to increase the share of electric cars to a quarter of its U.S. deliveries by about 2026 as the luxury brand steps up efforts to improve battery technology, the head of its U.S. operations said on Wednesday.
	Top Apple supplier plans rare holiday as output fears rattle investors TAIPEI (Reuters) – Foxconn, which assembles most of Apple Inc’s latest iPhones, will cut working hours over the week-long Lunar New Year holiday, a person familiar with the matter said, in a rare move that analysts interpreted as a sign of softening demand.
	Activist investor turns up heat on Yahoo, seeks leadership change (Reuters) – Activist investor Starboard Value LP on Wednesday ramped up pressure on Yahoo Inc , taking aim at Chief Executive Officer Marissa Mayer and her leadership team and raising the prospect that a proxy battle is approaching.
	Automakers strike back at Silicon Valley disruptors LAS VEGAS (Reuters) – Big automakers have spent several years watching their stock prices drift while the valuations of upstarts such as Uber and Tesla soared.
	Spot The Most Manipulated Market In The World One of these bubbles is not like the others, one of these bubbles just doesn’t belong… and yet still “officials” and talking-heads proclaim it cheap… Still think that China’s stock market is “stable” at these levels? Source: Bloomberg
	Sudden Massive Buyer Appears As Apple Breaks $100 Is Tim Cook in the house? Or is The SNB doubling down?
	With Stocks in Freefall, Nasdaq Breaks… They tried to slam VIX (and failed). JPY was sold (but failed). And Crude was temporarily ramped (but failed). So how do you stall a sell-off – BREAK THE MARKET AGAIN!! Becuase if oine thing stops selling… it’s stopping retail from trading entirely. But will it work?
	Oil Prices: Seeing a Bottom Doesn’t Mean You’re There Oil prices at an 11-year low seem extreme but energy stocks still haven’t shown signs of capitulation.
	U.S. Stocks Tumble on China Worries, Steep Drop in Oil A steep fall in oil prices and concerns about China sent stocks sharply lower, extending the shaky start to the year.
	Fed Minutes Show Officials’ Concern About Low Inflation Federal Reserve officials expressed some trepidation as they decided at a mid-December policy meeting to raise short-term U.S. interest rates after keeping them near zero for seven years.
	16 December 2015 FOMC Meeting Minutes: Why They Raised the Federal Funds Rate. The 16 December 2015 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members (minutes were released today). There was a significant amount of discussion why the federal funds rate was raised. The quote of these minutes was: … Normalizing policy gradually would keep the stance of monetary policy sufficiently accommodative to support further improvement in labor market conditions and to exert upward pressure on inflation. ….. Although there was not a universal alignment of perceptions amongst the FOMC participants – these meeting minutes showed more consensus previous meetings.
	In One Chart: Here’s how much government health-care spending has ballooned over two decades If you’re a dedicated Washington-watcher, you’re probably used to hearing politicians of all stripes bemoan rising health-care costs and detailing their plans for cutting them. A new chart from the Congressional Budget Office shows why.
	Bond Report: Treasury yields end near 4-week low after Fed minutes Treasury prices surged Wednesday, driving yields to their lowest level in nearly four weeks, as geopolitical concerns overseas fueled demand for assets perceived as safe, namely government debt.