Upbeat market sentiments seem to be pushing into 2018 as all indices make gains today, following record numbers on Tuesday. Tech shares are seeing a boost in recent trading, leading gains today. Providing extra support today is a better-than-expected December manufacturing and construction activity report released today. The December 12-13 FOMC minutes will be looked at for 2018 rate-hike signals. Overall, new capital flows should continue to funnel into equities for the start of 2018, which may put the Fed on alert depending on inflation figures. Some analysts suggest we’re overdue for a healthy pullback, but as of now the markets are following the path of least resistance upward.
In the short-term, investors should be monitoring the growing political unrest in Iran- which has turned deadly in recent days. Protests have grown to massive proportions, with broad civil ire directed toward Supreme Leader Ayatollah Ali Khamenei. Corruption, rising inflation and deep-seated socio-political concerns are the main factors driving the protests. Pro-government counter-protests have also begun, which can lead to a protracted conflict. Broader regional oil operations may be affected, so the crude oil markets will see an impact here. Geopolitical opportunities may present themselves as well, with hardliners within the Trump administration eyeing a time to leverage more pressure on Iran. This, coupled with yesterday’s inflamed rhetoric between President Trump and North Korea’s Kim Jong-un, will likely direct market sentiments in coming days.
At the time of publication, the DJIA is up 0.14%, or 35.37 points, at 24,860. The S&P 500 is trading at 2,707- up 0.40% from the open. The Nasdaq-100 is up 0.63% at 7,051.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows slight negative vector signals. Today’s positive vector figure of +0.04% moves to -0.30% within three trading sessions. Today’s predicted support and resistance is 2,673.54 (± 3.46) and 2,699.40 (± 3.49), respectively. The predicted close today is 2,693.46. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.