Evidence of the improving economy continues to inspire small investors who are continuing to move the markets up. However, volumes have been lower than average, suggesting that the institutional investors are on the sidelines. The chart patterns of some of the more speculative stocks also suggest institutions are quietly exiting. Given this, all traders should be prepared to exit any trades that do not move in the anticipated direction.
The negative correlation between the US dollar and the markets remains in play as we saw the markets rise as the dollar continued to fall.
Futures this morning are positive along with the DAX, indicating a positive open. The market bias indicators are neutral. The market condition scans are showing a weak bias to the upside, but with volumes and energy low, follow-through is not reliable.
Commodities continue to benefit from the weakness in the US Dollar with oil , gold and silver trading positively. The TSX is benefiting from this, but the mining and oil stocks are not keeping up with the commodity futures.
Canadian CPI was up in October by 0.1%, the first rise in 5 months.
| Index | Change | %Change | Level | Phase |
| TSX | +117.74 | +1.02% | 11630.00 | Bullish |
| DJIA | +30.46 | +0.29% | 10437.42 | Bullish |
| Nasdaq | +5.93 | +0.27% | 2203.78 | Bullish |
| SP 500 | +1.02 | +0.09% | 1110.32 | Bullish |
| Russell 2000 | -0.53 | -0.09% | 602.34 | Warning |
| NYSE | -3.04 | -0.04% | 7234.06 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a positive bias
Energy: weak
Primary Trend: sideways to down
Market: Trading Range
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Warning |
| Technology | Bullish |
| Utilities | Warning |
| Energy | Bullish |
| Financials | Warning |
| Industrials | Bullish |
| Materials | Bullish |
| Consumer Discretionary | Bullish |
Source: Telechart
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