It was a mixed day in equity land, with the SPX printing a new historic high of 3712, but seeing a very significant swing lower to 3660, and settling -29pts (0.8%) to 3672. Meanwhile, WTIC cooled by -8cents (0.2%) to $45.52
sp’weekly1b
WTIC daily
Summary
sp: A significant reversal, but today’s new historic high of 3712 is not to be dismissed lightly. The s/t setup does lean distinctly s/t bearish, but broadly, this market remains super strong. I would note the weekly 10MA at 3535, which is just above upper side of the multi-month bullish pennant.
wtic: a third day of cooling for oil, but again… it was just very minor. The door remains wide open to psy’50.
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Looking ahead
Thursday will see CPI, Weekly jobs, US T-budget, and the Fed’ balance sheet (4.30pm).
Earnings: CIEN, FLR, COST, LULU, AVGO, ORCL, MTN
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PF chart of the day
Computer has a bullish target of the $293s.
Boeing, monthly
First, note the November settlement above the key 10MA, with December follow through to break above the June $234s. The door is wide open to next resistance of the $280s, which is interesting just below the PF target.
Monthly momentum is set to turn positive in January 2021, and indeed, a run to the 280s or even psy’300 appears on the menu in early 2021. Sure, the 737MAX cancellations are still coming, but so long as another one doesn’t crash, the stock should be able to ascend into next spring.
Goodnight from London