Craig Johnson’s

Financial Markets Summary

Thursday, May 18, 2017

 

  • Oil is working on extending its streak to two consecutive weeks higher. News of an unofficial verbal agreement by some of the oil producing countries to not increase production until February 2018 took some of the immediate price pressure off of oil. Favorable inventory statistics also helped to strengthen oil’s price.
  • Oil has moved back towards the short term resistance area that resides between $49 - $51 a barrel. It closed yesterday near $49 a barrel. The larger trading range for oil extends up to $55 a barrel. Oil’s short term trend is neutral, while its intermediate and long term trends are lower.
  • Gold is also working on its second consecutive week of closing higher.  It is in a similar situation as oil with the short term trend neutral, while the intermediate and long term trends are downwards.
  • The U.S. dollar has weakened from its recent high in January while trading yesterday where it was trading on election day.
  • The stock market, which has had so many days of extremely low volatility, dropped sharply  yesterday recording a decline of 1.8% as measured by the S&P 500. Many individual stocks and sectors suffered larger declines,. especially names in the financial sector as well as the leadership groups of semiconductors and data storage.
  • The selling follows the Nasdaq Composite and S&P 500 recording all-time highs on Tuesday. The pullback appears to be part of a consolidation of the rapid advance the stock market has experienced from the second half of April through Tuesday.
  • The pullback so far from high to low has been a bit more than 2.1% for the S&P 500 and 2.6% for the Nasdaq Composite. Typically, pullbacks can range from 3 – 5%.  

Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases. 

Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice.  The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness.  References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service.  Past performance is not a guarantee of future results.

 

 

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