Will Stocks Continue to Rhyme With 2016?

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S&P 500 News

Invesco QQQ Trust,The Consumer Discretionary Select Sector SPDR® Fu,The Financial Select Sector SPDR® Fund

Market Overview Analysis by Geoff Bysshe covering: S&P 500, Invesco QQQ Trust, The Consumer Discretionary Select Sector SPDR® Fund, The Financial Select Sector SPDR® Fund. Read Geoff Bysshe's latest article on Investing.com

From everyone at MarketGauge, we hope you’ve had an enjoyable Thanksgiving weekend and that it kicks off a happy and healthy holiday season for you and the ones you love.

When measured from the close of Nov. 6th, shown below, the follow-through after the initial reaction to the election, the leaders and laggards looked quite different. The market’s resemblance to its 2016 trend is interesting, but we’ll be keeping a close eye on the trends in interest rates and leading sectors to anticipate future moves.With the election and earning season in the rearview mirror, the bulls will be looking for evidence that the economy remains strong, the Fed continues to accommodate, inflation stays calm, and interest rates cooperate.

Considering this, it’s fitting that AAPL should choose Black Friday to break out of its 5-month consolidation that has followed its announcement of its AI initiatives. See the chart below.November’s performance would be hard to beat, and December is not historically stronger than November. However, December does have some very bullish stats.

With a much-anticipated employment report, this coming Friday and an expected rate cut coming mid-month, there’s plenty to look forward to.S&P and Dow made new all-time highs this week, indicating further bullish action. Both are not overbought on both price and real motion together. Market internals, viewed through the McClellan Oscillator is positive and confirmed price action for the NYSE and Nasdaq and the cumulative advance/decline line for the NYSE also hit new all-time highs.

The modern family collectively improved with Semiconductors and Biotech regaining their 200-Day Moving Averages while Retail closed very strong and Transports closed on new all-time highs.

 

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