For the most part, last week was flat with some bouts of choppiness. I think Fed Chair Janet Yellen and the Fed were drowned out by everyone’s anticipation of the inaugural address. The outcome was very predictable. The American people liked it and the mainstream media didn’t. The market jumped off a cliff during the speech but spent the rest of the day recovering after it.
The USH traded in a below-average 2-20 point weekly range and settled up 16-ticks on the week and down 10-ticks on the session at 152-09. As expected the Ten-year successfully ground higher and tested and rejected my upper weekly and key resistance targets at 125-02 and 125-10.
U.S. stocks opened lower on Thursday after President-elect Donald Trump gave little clarity on his promises of boosting economic growth that had powered a record-breaking rally on the financial market for two months.
WTI crude oil futures have failed to hold below a key previous high point, and now are up 2.7% on the day. As we noted, the major technical indicators we follow still have not really turned bearish on a weekly timeframe. Oil will still be overall supported by bullish forces in the market.