Market Light Weekly Update November 21st, 2017: Back Again to Record Highs. Thank Goodness.

John Dupriest Market Light

There is much to be thankful for. Very much. While there often seems to be chaos around us, for the most part in America we are insulated, protected, fortunate.


We are free and stewards of our own futures. Our nation is well blessed and we must take time this week to be especially cognizant of that.


In the meantime, the markets are at yet another milestone and record highs. If things continue in this direction, we will have nine straight fiscal quarters of advance, matching a two-decade-long winning streak. The S&P 500 is today at 2,600 — with momentum. This year has had the most even-hundred milestones ever. We have moved through 2300, 2400, 2500 and now 2600. And we still have about five weeks to go. It has been since the Atlas V launched astronauts to the moon that we’ve seen such a trajectory. The Dow Jones Industrials are now above 23,600.


The jubilance is largely based on the likelihood of substantial tax policy change. That is further leveraged by sound corporate profits. On top of that, investors are again shrugging off political frictions – here, there, and everywhere.


The Market Light returns to Green, with the Dow having bounced off a short term moving average and having come close to a regression line reaching back to last spring. The brief sell off experienced earlier this month has been overcome. It should be noted, however, that two of the primary indicators used in Market Light calculation have yet to be restored to the upper direction.

And, finally, remember this week to not only be thankful, but to stay thankful. It is something that should guide our minds and actions each day.


Leading relative strength ETFs this week include Semiconductors (SOXX), Home Construction (ITB), Solar (TAN), Technology (FXL), and Oil (DBO). Weak ones were Mexico (EWW), Telecommunications (IYZ), Biotechnology (IBB), Metals & Mining (XME), and Silver (SLV).


The Technical Tea Leaves have turned more positive this week as well: Trend Status has changed to a weak upward trend.  This indicates that an upward trend has started and may continue in this direction.  This is a moderate bullish signal.


The up/down volume oscillator has turned positive when the advance/decline oscillator and the exponentially  smoothed advance/decline line are already positive.  In this market, this is viewed as a bullish signal that could precede an upward price movement