SGT Chart Book: Stocks Move Higher for a Fourth Consecutive Week
The S&P 500 rose 0.1%, while the tech-heavy Nasdaq Composite fell 0.1%. The blue-chip Dow Jones Industrial Average gained 0.3% (117 points). Friday’s trading session was shorter than usual due to the Thanksgiving holiday, with relatively light trading volume.
All three major indexes are on track for their best monthly performance in more than a year.
The yield on the benchmark 10-year U.S. Treasury note edged higher. It settled Friday at 4.483%, snapping a run of five consecutive daily declines.
“The story of the year has been interest rates, and right now the Fed is giving investors a green light,” said a leading money manager.
Stocks sold off between late July and October as fears built that the Federal Reserve’s campaign to fight inflation would leave interest rates higher for longer than investors hoped. But optimism has lately been built that the central bank won’t raise rates further and will even start to lower them in 2024.
A survey of purchasing managers from S&P Global released on Friday found that businesses cut jobs in November because of softer demand and cost pressures, the latest sign that the economy is cooling. Recent government data reveals slowing job growth and easing inflation which has built hopes that the Fed might bring inflation to heel without causing a recession.
Gold closed above $2,000 a troy ounce for the first time since May.
Bitcoin rose above $38,000 in intraday trading for the first time since May 2022, despite the US dollar ending the week at a 3-month low.
Retests of previous highs…… look left. Rally into end of 2023.
Key driver of markets this year, longer term trendline support offers a place for bulls to get encouraged.
Looks set to push higher after the weekly close above $2,000.
Trendline resistance holds, and we expect this level to be taken out for higher silver prices.
Held initial resistance at 1.0965 as we mentioned last week. Sideways activity dominated during a relativity quiet holiday week.
Until next week, happy trading.
SGT Trade Desk
Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.
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