Daily Markets Forecast Outlook - Monday Nov. 7
Monday November 07, 2016 Market Commentary
Stocks - SP500 futures are currently pricing in a 28 point upward move on the opening. Supposedly the market is seeing support now with the FBI clearing Hillary Clinton for the second time concerning her email server issues. The market could possibly see an extended rebound now after selling off for nine trading days straight. Longer term the forecast for the major market indexes is still down. First, 20% of the Nasdaq's move higher came from Apple, Amazon, and Facebook in which now they have been declining with the rest of the broad market. Current SP500 resistance is 2,110 to 2,119, the Dow Jones is 18,025 to 18,070, and the Nasdaq is 4,726 to 4.779. The downward forecast for the SP500 is 1,950 to 1,991, the Dow Jones is 16,500 to 17,000, and the Nasdaq is 4,545 to 4,603.
Bonds - The 30 Year US T-Bond has now hit the low 161 area which was previously forecasted. Currently, the price is consolidating and the forecast is for a possible short-term rebound of some kind of which may possibly not happen. Longer term, the forecast is down.
US Dollar Index - The US dollar index has sold off since last week and should be reversing anytime now if it's going to continue higher. 96.00 is major support now on the USD index. If 96.00 breaks support this would suggest the previous 100.51 forecast is canceled, and the index could see much lower prices moving forward.
Gold - Current price support for gold is 1242.65. The near-term gold forecast is for prices to carry higher to the 1,434 to 1,500 area. Short-term gold is forecasted higher and longer-term it's forecasted lower after it reaches the 1,434 to 1,500 forecasted price range.
Disclosure: None.
With today's shock win surprise for Trump, gold is trading considerably higher as the market looks to safer investments to balance the unease at the prospect of an inexperienced and unknown entity running the US economy and country. As of around 6am EST, ABX is up over 7.5% higher in pre-market trading and gold is up over 2%. We can expect a large amount of volatility in commodities, currency and stock markets globally in the days, and weeks ahead. The VIX ETF closed up around 5% yesterday and we can expect more of a roller-coaster of a ride I am sure of that. Please return to your seats and fasten your seatbelts until the leader of the free world reassures us its safe to do so!