It was a bullish week for US equity indexes, with net weekly gains ranging from +4.0% (Dow), +3.8% (SPX), +3.6% (Nasdaq comp'), +3.1% (NYSE comp'), +2.7% (Transports), to +2.4% (R2K).
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
Nasdaq comp'
Dow
R2K
NYSE comp'
Trans
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Summary
All six US equity indexes settled net higher for the week.
The Dow lead the way higher, whilst the R2K lagged.
More broadly, the SPX, Nasdaq comp, Dow, NYSE comp', and Transports are above their respective monthly 10MA, whilst the R2K is below.
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Looking ahead
The schedule is pretty light, with the highlight of the week being the FOMC.
Earnings:
M - -
T - -
W - LEN, TCOM
T - ADBE, ACN, JBL, FDX
F - DRI, WGO
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Econ-data/events
M - -
T - PPI
W - Retail sales, Empire state manu', Business invent', EIA Pet' report
*FOMC announcement 2pm, with a press conf' 2.30pm
T - Weekly jobs, housing starts, Phil' fed, indust' prod', PMI manu'/serv'
F - *OPEX*
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Final note
On any basis, it was a very bullish week, with the market rising on reduced Omicron concerns, and coping with broadly rising inflation.
This week's FOMC is the last major event of the year, and to be clear... I do not fear the QE taper, nor higher interest rates. It remains the case that the ultimate equity sell signal is a rate cut, and its bemusing that many still don't know their history.
Yes, there are a great many problems out there, not least the systemic breaks in the US/global supply chain, but for now... the market/mainstream simply don't care. Eventually they will, but whether that is in 2022, or a few years beyond is difficult to foresee.
We have just 14 trading days left of 2021. For those that like charts, and want more of the same... you know where I am.
For details and the latest offers, see: https://www.tradingsunset.com
Have a good weekend
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*the next post on this page will likely appear 5pm EST on Monday.
