Monday's analysts highlighted the 200-day moving average, which the market fought over briefly but quickly dismissed. This week the S&P 500 breached its 50-week simple moving average, which appears to be more significant.
The Federal Open Market Committee last week reduced monthly bond buying by $10 billion for the second straight meeting, cutting purchases to $65 billion following gains in the job market and signs of stronger spending by businesses and households.
The commodity slump that spurred bear markets in everything from gold to corn to sugar this year will deepen by the end of December as prices head for their first annual loss since 2008, if history is any guide.
Hidden Markov models are making inroads into institutional trading. Their applications are broad. One, forecasting future indicator values, can give you an edge trading the currency and commodity markets.
We have been writing about our bearish views of the bond market, and we still hold those views. With the stock market rallying to new 2013 highs today, we believe a sharp move down in bond prices will occur soon.
Commodities were poised to enter a bear market as U.S. reports on manufacturing, jobless claims and home sales signaled a faltering economy after the Federal Reserve refrained from announcing another round of stimulus.