The correlation between Crude Oil and the S&P 500 has been rather high over the last 100-days, as each looks to have peaked at the same time around the 1st of October - see chart below at (1).
Joe Friday Just The Facts Ma’am- All of these indices hit long-term rising support on Christmas Eve at each (1), where support held and rallies have followed.
The rally from the lows on Christmas Eve has RSP testing the top of a newly formed falling channel while testing the underneath side of the 2018 trading range and its falling 50-day moving average at (1).
The Value Line Geometric Index (chart below) tends to give investors a good idea of the health of the overall market. It is an equal-weighted index with a broad swath of stocks that gives investors an idea of how the “average stock” is performing.
Chart below shows Gold and Silver from a long-term perspective. Both have created a series of lower highs over the past 8-years. Will 2019 bring a change to this trend? A big test is in play!
The chart below shows the Trump rally has the S&P testing the underside of its 2018 trading range, it’s 38% retracement level, and falling resistance at (1). While this is taking place the VIX index is testing rising support at (2).
Is 2018-2019 going to be a repeat of the 2007-2008 crisis for the home builders? One indicator/index to watch is the Dow Jones Home Construction Index.
The rally since the lows in 2016 has Gold facing the top of its 8-year falling channel in the chart below at (2). This test comes into play as resistance for Gold, something it has struggled with for years.
One of the broadest stock market indices in the states is starting off the year with a key test, that could send a very important message for months to come!
