Daily Market Update – November 23, 2016 (Close)
With these trade shortened holiday weeks anything can happen, but from the view this morning it looked as if the Trump rally would now take a day of rest as much of the nation was in transit.
Futures appeared to be fairly quiet this morning as the day began with more new record closing highs.
When it was all over, there were more record highs.
Nothing huge, but still new highs, even as the S&P 500 was up only 0.08% and the NASDAQ was actually down 0.1%.
People like to talk about those round numbers, so yesterday was a big day as the DJIA closed above 19000 for the first time and the S&P 500 closed over 2200 and today they stayed above those levels.
There is plenty of reason to think that when these kind of new highs are hit it is just a launching board for a sharp move higher.
There is also plenty of evidence to suggest when we hit these kind of new highs there is profit taking ahead.
Then there is plenty of evidence to suggest that when we hit these new highs and there is subsequent profit taking, that becomes a launching pad for new highs.
Although another test of those highs may be in store, with more evidence indicating that the third time is a charm.
Then, there is also plenty of evidence that when we hit these kind of new highs there is a correction ahead.
Take your pick.
I think that we may have more new highs ahead, but I also think that the FOMC enters back into the equation.
Not just with its announcement next month, but also with the frequency and size of interest rate decisions in 2017.
For the rest of 2016, I think we may coast and end up looking at the year as a very positive one for the markets, but more importantly, for ourselves.
Even more importantly, I hope everyone has a happy and healthy Thanksgiving.