The final full buying and selling week earlier than the Thanksgiving vacation has ended on a optimistic observe. Following up on yesterday’s weblog submit, the S&P 500 Equal Weighted Index ($SPXEW) has continued to outperform the S&P 500’s value motion and hit a brand new all-time excessive. Equally, the Nasdaq 100 Equal Weighted Index ($NDXE) is near its all-time excessive (0.10% away from it in keeping with the Distance to 52-Week Excessive indicator).

The mid and small-cap indexes, $MID and $SML, remained market index leaders on Friday. From the every day chart of the S&P 600 Small Cap Index ($SML) beneath, observe how the index broke out of a sideways buying and selling vary, climbed to a excessive on November 11, after which pulled again and bounced off the earlier October excessive resistance degree. It is now on its method again to its all-time excessive.

FIGURE 1. DAILY CHART OF S&P 600 SMALL CAP INDEX ($SML). A breakout adopted by a pullback after which a bounce of a assist degree seems promising for small-cap shares.Chart supply: StockCharts.com. For academic functions.

The proportion of shares buying and selling above their 50-day shifting common is rising, and advances outperform decliners. With market breadth supporting bullish value motion, it is protected to say that buyers are piling into small caps.

So, in a nutshell, Friday’s value motion was a continuation of Thursday’s motion. The S&P 500 ($SPX) and Dow Jones Industrial Common ($INDU) are approaching their all-time highs, however the Nasdaq Composite ($COMPQ) nonetheless has to interrupt by means of 19,080 to make its approach to its all-time excessive.

Along with equities, treasured metals, particularly gold, have additionally been climbing larger. The every day chart of the SPDR Gold Shares ETF (GLD) beneath reveals that after hitting a excessive on October 30, GLD fell roughly 8.30%. It has now bounced again, rising round 5.80% from the November 14 low. GLD faces resistance that sits barely above $250 (crimson horizontal dashed line) and assist from its 25-day easy shifting common.

FIGURE 2. DAILY CHART OF SPDR GOLD SHARES (GLD). Gold’s rise, pullback, and rebound make it a chart value including to your ChartLists.Chart supply: StockCharts.com. For academic functions.

If GLD overcomes that resistance subsequent week, it signifies that buyers’ issues about slower fee cuts and geopolitical tensions stay entrance and heart. 

The Dollar Retains On Rising 

The US greenback has additionally been rising, hurting different currencies, particularly the euro. The weekly chart of $EURUSD beneath reveals it hitting ranges it final noticed on the finish of 2022.

FIGURE 3. WEEKLY CHART OF $EURUSD. The steep fall within the euro might be as a result of a weakening European financial system and issues about geopolitical tensions.Chart supply: StockCharts.com. For academic functions.

The rise within the buck is because of a robust US financial system, however the transfer within the $EURUSD is important. Europe is experiencing slower financial development, however geopolitical issues have additionally risen. The 2 often is the cause for the depth of the autumn within the euro.

Often, a stronger greenback places stress on commodities reminiscent of treasured metals, however that is not occurring proper now. Moreover potential geopolitical tensions, there’s additionally the priority that the Fed might have fewer rate of interest cuts subsequent yr. In line with the CME FedWatch Software, the likelihood of a 25 foundation level within the December FOMC assembly has dropped to 56.20%.

Bitcoin’s Daring Transfer

You possibly can’t assist however discover Bitcoin’s rise this week. The cryptocurrency crossed its psychological $100,000 degree, however closed barely decrease at $99,210 (see chart beneath).

FIGURE 4. DAILY CHART OF BITCOIN. The explosive rally in Bitcoin has caught everybody’s consideration. $BTCUSD hit the psychological $10K degree however could not maintain on to it.Chart supply: StockCharts.com. For academic functions.

After bouncing off its 21-day exponential shifting common (EMA) in early November, $BTCUSD rocketed larger, consolidated for about seven days, after which continued its journey larger. The shifting common convergence/divergence indicator within the backside panel reveals no indicators of slowing down.

Wanting Forward 

There’s been a number of pleasure this week. Subsequent week is a brief buying and selling week, however there are some key financial knowledge to observe, the extra vital ones being the PCE, sturdy items orders, and FOMC minutes. This may convey the deal with what the Fed is more likely to do when it meets subsequent. If there’s a sign of no fee cuts within the December assembly, we might see extra of the identical value motion spill into subsequent week.

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Finish-of-Week Wrap-Up

• S&P 500 up 1.68% for the week, at 5969.34, Dow Jones Industrial Common up 1.96% for the week at 44,296.51; Nasdaq Composite up 1.73% for the week at 19,003.65
• $VIX down 5.20% for the week, closing at 15.30
• Finest performing sector for the week: Supplies
• Worst performing sector for the week: Well being Care
• Prime 5 Massive Cap SCTR shares: Summit Therapeutics (SMMT); Applovin Corp. (APP); MicroStrategy Inc. (MSTR); Texas Pacific Land (TPL); Palantir Applied sciences (PLTR)

On the Radar Subsequent Week

• October New Residence Gross sales
• FOMC Minutes
• October Sturdy Items Orders
• October PCE Value Index
• November Chicago PMI

Disclaimer: This weblog is for academic functions solely and shouldn’t be construed as monetary recommendation. The concepts and techniques ought to by no means be used with out first assessing your individual private and monetary scenario, or with out consulting a monetary skilled.