Lions! Why The Coming Week May Be A Pivotal One For The Stock Market. By Gregory Mannarino
I believe that the week ahead, beginning tomorrow, may play out to be a very interesting one for stocks, here's why...
With the Dow Jones industrial average hitting eight records in a row, it seems that very few people are paying attention to the Dow transports which have sold off fast and hard since the middle of July.
Are the Dow transports sending a signal that the stock market is about to drop?
Well one of two things has to happen.
Either 1., we get a rebound in the Dow transports which would, in theory, drive stocks higher or
2., we get a correction in the market.
Technically speaking the Dow Jones industrial average, the S&P 500, and the NASDAQ are way over owned.
Each of the major indices right now are riding well above their 50 day moving average, and if you have a copy of my new "Rip System" for trading, you know how important the 50 day moving average is. Click here: http://www.lulu.com/shop/gregory-mannarino/the-rip-the-markets-face-off-system-for-technical-trading/ebook/product-23285099.html
The other place we all need to be looking, is at the bond market.
The yield curve continues to flatten out with the 10 year yield now hovering about 2.26
The continuing dollar plunge is also a supporting factor of this market however, as I spoke about last week on my blogs, the US dollar may indeed be poised for a rebound.
In summary:
-The Dow transports may be signaling an imminent downturn in the stock market unless they rebound.
-The US dollar. If we do get a rebound, which I believe is likely at this time, this could put pressure on the stock market as well.
-Moreover, with all 3 of the major indices well above the 50 day moving averages, a market correction may be imminent.
*Ok, now I'm off to the pool! ; )
Gregory Mannarino @marketreport
thank you Greg
I have been expecting a signification sell off for stocks in general especially the big names in the S&P 500 for a couple of years now. It's amazing how they just continue to grind higher into the stratosphere. It has been great for my 401K but I am concerned that the longer we go without a correction the worse the drop is going to be in the end.
All the indicators you've mentioned point to a correction in the market, which is greatly needed, but I simply don't think we see it. The Stock market is the greatest political tool in the the tool box now and any hint of trouble and the people will start to lose faith. The Stock market has always been the greatest protector of the dollar, now I feel it's also the greatest protector of Washington. They have to keep the "Zombie Apocalypse" alive and well and the worst thing they could do to wake up the masses is let the market fall.
The longer they keep this train on the tracks the more momentum it gains and when they do decide to let it derail, I think it's going to a global disaster like we've never seen before. We just have to keep stacking.
Thx
Good post. Thanks for share.
I think that we're up for a small correction, better play safe and bet a small amount.
we do agree with you and we thank you and we did upvote and re steem
thanks for the updates
Hi Greg, had an office pow-wow last week as we are trying to figure out what is next for this market. Did not consider the transports (good call on your part), but the items that did come up included the impact of pro traders going on vacation the next couple weeks and 'risk management' adjustments that will need to be made sooner or later. The big market movers like to make big money, and by % they may be seeing less upside potential going into the end of the year in stocks than other vehicles. Maybe they will give us all a nice Christmas present and decide that silver is a good place to be going into 2018!
I am hoping for a clear correction in the market this week! Thanks for the info Greg @marketreport