MARKET REPORT 15 MARCH 2016 : SP 500 RALLIES to 2020 level.
|Scooped by Investors Europe Stock Brokers|
Investors Europe Stock Brokers's insight:
- Major US and global indexes moved higher off the panic February low led by retail, gold, materials and oil stocks
- Last years sector and stock losers (down 50% or more) where the biggest gainers during the past 4 week rally.
- The latest rally has moved the markets right back to the December levels before the market rolled over.
- 2100 on the SP500 is a level to watch if the bulls can move higher and strong leadership develop.
- Watch the US Russell 2000 small caps as they sit right on their neckline after breaking down last year. (see video)
- The bears are hoping the market runs into resistance here, and rolls over to retest the prior lows (neckline in the video)
- The uncertainty around one of the most volatile US elections, North Korea launching nuclear missiles, Syrian refuges and global monetary policy is affecting the global markets.
- Watching the price action of leading stocks and sectors over the next 1-2 months will be important.
- Europe is scared and last week Mario Draghi and the European Central Bank president’s announcement of new monetary measures late last week is designed to fight against sluggish growth and the now-chronic threat of deflation. Will they be successful? Watch European bank stocks and the FEU ETF that tracks Europe for the answers.
- Watching the price action of the markets is the ONLY way to really know if they are correct in their policy or will it back fire and the markets spank them for trying.
- See charts of Deutcha bank and the European stock market in the video for answers to the above questions.
- I will be watching the US financial sector and European Bank stocks for clues to how the market is responding to global monetary policy.
- The 200 day moving average is sloping down in all US indexes, when this occurs the probability of bad things happening is higher than if it was sloping upward (healthy)
- Accounts remain in cash.
- I will replant cash back into long term stocks and funds once this market transitions back into a health uptrend (200 day sloping upward, leading stocks forming sound technical bases, and strong sectors begin to emerge other than defensive industries which we now have leading)
- Wednesday this week the US Federal Reserve meets to discuss interest rates and stimulus.
- Patience is important now as we let the price action tell us what the next move will be.
- I will keep you posted in my next video which will be sent out the weekend of March 26.