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fib_1618

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However, with the BETS indicator still showing a lack of confirmation with these higher highs, we should continue to be on guard to seeing a one to two week digestion period to help give the commodity based Canadian markets an opportunity to play catch up to this same re-initiation thrust seen in the US markets. Taking the two together then, let's maintain last week's expectation of short and shallow price pullbacks to continue, with choppy sideways behavior becoming more evident, and with any near term surprises to be positive ones to the upside as we move into this month's OPEX period on November 21st.

Pretty much a bull's eye on this one as the S&P 500 had its largest gain on Monday and then preceded to close sideways after that within a 1.57 point range for the rest of the week. Overall, the major market indices were up an average .37%, week over week, with the NASDAQ Composite Index leading the way with a 1.21% gain and currently working on a 5 day winning streak.

Looking over this weeks breadth charts array and we see very little in the way of movement in the NYSE related derivatives though there was a slight downward bias as the market fulfilled its expectation of a short term pause. The NYSE Preferred advance/decline line continues to move into new all time high territory, while the NYSE Bond CEF advance/decline line moved to new all time highs on Thursday before pulling back on Friday and coming to a rest on its longer term rising bottoms line noted on the chart. As long as both of these money flow lines continue to see higher highs, not only will this contain any further increases in the yield of the 10 year note, but this promises us that we'll see higher equity prices in the not too distant future.

Over in Europe, we're now seeing a bit of a split between the FTSE advance/decline line as it continues to show positive money flow, while over in Germany, the DAX advance/decline line looks to be digesting its previous gains made from the middle part of October on what was its rising bottoms line from 2013. However, the important challenge that awaits both of these exchanges is whether or not they'll be able to find enough conviction by traders to break above the declining tops lines that are shown on both charts made over the summer. For now, we'll call the glass "half full" and take a look and see attitude over the next couple of weeks as to knowing whether the European continent is out of their recession woods or not.

The Precious Metals and XAU advance/decline lines both showed late week excitement as the price of gold fulfilled its technical obligation of snapping back to what was its previous horizontal line of support before the breakdown in late October. As we can see on the charts, enough money did move back in with this snapback to perceptively break above the longer term declining tops lines marked on the advance/decline data. However, money is not leading either gold or the XAU price index to the upside in this same effort. Because of this, we might had seen the last of the weak shorts covering their positions on Friday after the morning's head fake, and if this is indeed the case, we should see a hard reversal to the downside in the price of gold and silver early next week that should carry into the early part of December.

So it would seem that the market is finally in a "pause to refresh" mode as we move into next week's option's expiration period on Friday. On a positive note, the BETS actually moved up this week from a -10 to a -5, and a quick review of the cumulative charts shows that much of this firmness can be attributed to the Canadian breadth indicators beginning to firm even in the face of this past weeks 4 year lows in the price of crude oil. With the market continuing to show a good amount of buoyancy here of late, let's again maintain an expectation of further short and shallow price pullbacks to continue in what continues to be a high level price consolidation, and once we get November OPEX out of the way, this may be enough of a weight lifted to resume the advance going into the Thanksgiving holiday period that takes place the following week.

Have a great trading week!

US Equity Markets:

[breadthspx111414]



[breadthdjia111414]


[breadthspec111414]


[breadthpre111414]

US Interest Rates:

[breadthtnx111414]

US Real Estate:

[breadthreit111414]

Precious Metals:

[breadthpm111414]


[breadthxau111414]

Australia:

[breadthaus111414]

England:

[breadthftse111414]

Germany:

[breadthdax111414]

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