View From The Hill: December-3-2015

Posted on Posted in Views From The Hill

Draghi’s Limp Stimulus Drags Down Markets

bulls-and-bears4

This evening’s comments will be brief, if any at all.

Today’s market was about as irrational as it gets. This time it was not Yellen who prompted the selling, but Europe’s chief central banker himself, Mario Draghi. Apparently he did not cut rates or increase QE stimulus enough and the market threw a tantrum. (Anticipate some readjustments as I am sure some will want to rethink this once they consider the comparative economic status between Europe and the USA.)

 


Performance Summary

  • N/A

 

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

vfth-performance-12-3-2015
@ 19:27 ET                 Click to enlarge

 


Market Condition

The bulls responded alright. They ran south like raped apes and hardly looked back. Violation of support at the current uptrend’s lower channel did not help morale much either. If they fail to reclaim this territory, then I do not think 2040 support will hold much longer and 2020-2015 is the next target. Unlike the SP-500, the Nasdaq-100 and Russell-2000 did just the opposite and maintained support at the lower channel of their respective uptrends. That in itself is a moral victory on a day like today. Let’s see what tomorrow brings.

Keep Hillbent for the Market Direction…

 

Daily Chart Technical Analysis
sp500-daily-12-3-2015
Click to enlarge

 

Market Breadth
Advancers 56 Decliners 445
New 5-day highs 36 New 5-day lows 378
New 52-week highs 42 New 52-week lows 29
Bullish reversals 23 Bearish reversals 37

 

Market Momentum
% > 20 M.A. % > 50 M.A. % > 100 M.A. % > 200 M.A.
28%↓ 51%
42% ↓
42% ↓
↑ = positive momentum; ↓ = negative momentum; and ↔ = neutral momentum

 


Volume Radar Alerts

  • Vol % = volume percentage greater than average volume
  • SIR = short interest ratio or days to cover
vfth-volume-radar-12-3-2015
Click to enlarge

 


Disclaimer

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