Written by Gary
US stock market indexes are heading lower (SPY -07%) as traders eyed the release of key data while weighing the latest concerns about an FBI investigation into Hillary Clinton’s use of a private email server. Short-Term indicators are moderately bearish.
Here is the current market situation from CNN Money | |
 | North and South American markets are broadly lower today with shares in Brazil off the most. The Bovespa is down 2.40% while Mexico’s IPC is off 1.84% and U.S.’s S&P 500 is lower by 0.66%. |
Traders Corner – Health of the Market
| Index | Description | Current Value |
| Investors.com Members Sentiment: | % Bullish (the balance is Bearish) | 71% |
| CNN’s Fear & Greed Index | Above 50 = greed, below 50 = fear | 29% |
| Investors Intelligence sets the breath | Above 50 bullish | 55% |
| StockChart.com Overbought / Oversold Index ($NYMO) | anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. | -37.58 |
| StockChart.com NYSE % of stocks above 200 DMA Index ($OEXA200R) | $NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% – 55%. Following a major market correction, the conditions for safe re-entry are when: a) Daily $OEXA200R rises above 65% Secondary Bullish Indicators: a) RSI is POSITIVE (above 50) b) Slow STO is POSITIVE (black line above red line) c) MACD is POSITIVE (black line above red line) | 67% |
| StockChart.com NYSE Bullish Percent Index ($BPNYA) | Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. | 57% |
| StockChart.com S&P 500 Bullish Percent Index ($BPSPX) | In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. | 55% |
| StockChart.com 10 Year Treasury Note Yield Index ($TNX) | ten year note index value | 18.34 |
| StockChart.com Consumer Discretionary ETF (XLY) | As long as the consumer discretionary holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy | 78.10 |
| StockChart.com NYSE Composite (Liquidity) Index ($NYA) | Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors | 10,442 |
Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Wall St. lower amid election jitters, tepid data(Reuters) – Wall Street slipped in late morning trading on Tuesday amid uncertainty surrounding the U.S. presidential election and tepid construction spending data. |
| U.S. factories expand in October; construction spending fallsWASHINGTON (Reuters) – U.S. factory activity increased for a second straight month in October amid a pickup in production and hiring, supporting views manufacturing would regain some momentum in the fourth quarter. |
| Pfizer scraps cholesterol fighter, trims profit forecast(Reuters) – Pfizer Inc said it halted development of a costly new type of cholesterol fighter because disappointing clinical trial data and an unfavorable market for similar approved drugs bode poorly for its injectable medicine. |
| GM sales drop 1.7 percent; U.S. auto sales seen off despite discountsDETROIT (Reuters) – General Motors Co’s sales in October fell a less-than-forecast 1.7 percent as hefty gains for pickups and SUVs offset declines for its sedans but the industry was expected to report a larger drop. |
| On Wall Street, a high-ranking few still avoid email(Reuters) – In an age when most bankers use keyboards to communicate with each other, a small group of the Wall Street elite refuses to say anything substantive in an email, text or chat, and some will not communicate digitally at all. |
| Atlanta Fed lowers U.S. fourth-quarter GDP view to 2.3 percentNEW YORK (Reuters) – The U.S. economy is on track to grow at a 2.3 percent annualized pace in the fourth quarter on expected lower consumer spending and overall investments, the Atlanta Federal Reserve’s GDP Now forecast model showed on Tuesday. |
| Gannett abandons pursuit of Chicago Tribune-owner Tronc(Reuters) – Gannett Co Inc , the publisher of USA Today, said on Tuesday it had abandoned plans to buy Tronc Inc , the publisher of the Chicago Tribune and the Los Angeles Times. |
| Thomson Reuters to cut 2,000 jobs; profit tops estimates(Reuters) – Thomson Reuters Corp third-quarter earnings beat analyst expectations on Tuesday and the company said it would cut jobs worldwide, taking a fourth-quarter charge of $200 million to $250 million to streamline its business. |
| Oil up on dollar, OPEC limits rise; gasoline jumps on line explosionNEW YORK (Reuters) – Oil prices edged higher on Tuesday as a weaker dollar boosted greenback-denominated commodities, although worries that OPEC will not do much to reduce a global glut kept the market near one-month lows. |
| Billionaire: “Single Digit Millionaires” Are Too Poor to Get Justice In AmericaBillionaire Peter Thiel said yesterday:
Thiel is saying even plain vanilla millionaires can’t afford justice in America. Fordham Law School professor and criminal justice expert John Pfaff notes that – using 2007 numbers – many states’ entire budgets for legal defense for people who can’t afford a lawyer is in the single-digit millions. (Given that the Great Recession happened shortly afterward, those numbers have undoubtedly declined since 2007.) In other words, under Thiel’s logic, even if an entire states’ annual budget for legal defense were spent on a single person, it wouldn’t be enough to deliver justice. Indeed, there are two systems of justice in America … one for the fatcats … and one for everyone else. After all, Americans … |
| S&P Breaks Support, Tumbles To 3-Month Lows As VIX Tops 19Well that escalated quickly…
S&P 500 has its next support around 2080 – the 200-day moving average. |
| Did the $100 TRILLION Global Bond Bubble Just Burst?Globally bonds are collapsing. Germany’s 10-Year Bund has seen yields spike out of their downtrend.
As have Japan’s 10-Year Government Bonds.
Long-Term US Treasuries have taken out their trendline.
As have Junk Bonds.
Folks, the bond markets are flashing DANGER DANGER. Globally the bond bubble is now well over $100 Trillion. And to top it off, ther’s another $555 TRILLION in derivatives trading based on bond prices! Another Crisis is brewing… the time to prepare is now. Smart investors, however, are preparing for what’s to come. On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide. In it, we outline the coming crash will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse. We are giving away just 1,000 copies of this report for FREE to the public. To pick up yours, swing by: https://www.phoenixcapitalmarketing.com/stockmarketcrash.html Best Regards Graham Summers Chief Market Strategist Pho … |
| Big Pharma Sales Need a Booster Shot​Slowing sales, rather than election worries, are pressuring pharmaceutical stocks. |
| Why Everything Isn’t All Right With China’s EconomyGood news on manufacturing data will only hasten China’s need to close the credit taps. |
| Standard Chartered’s Precarious Balancing ActStandard Chartered is investing to lift revenue prospects but third-quarter results will stoke concerns over when it might generate a decent return on equity and resume dividends. |
| September 2016 Construction Spending Remains In Contraction Year-over-YearWritten by Steven Hansen The headlines say construction spending was down, and again was significantly below expectations. This series remains in contraction after almost 5 years in expansion.
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| The Technical Indicator: S&P 500 teeters on major support amid tightening political raceTechnically speaking, the U.S. benchmarks are starting November — and the best six-month seasonal span — against an increasingly tenuous backdrop. Consider that the S&P 500 is back for its latest crack at the 2,117 support, while the small- and mid-cap benchmarks have concurrently reached three-month lows. |
| Apple’s stock suffering fifth straight loss after earningsApple’s stock erases early gains to turn sharply lower, putting it on track to suffer a fifth straight loss since the technology giant missed fiscal fourth-quarter earnings expectations. |
| Darrell Delamaide’s Political Capital: Hillary Clinton is irreparably damaged, even if she winsEven if she wins — and that’s looking more doubtful after the FBI reopened its email investigation — Hillary Clinton will be too damaged to be effective, writes Darrell Delamaide. |
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