Tuesday Market Commentary - November 29, 2016

Stocks Sell - The Dow rose to a all-time high on November 23rd. The stocks advancing to declining was flat to negative. Internal indicators are weak. If the Dow closes down strongly today, this could very possibly be a major sell signal with a potential Dow sell-off of at least 300 plus points. Dow major support is currently 19,070. Short-term the potential for the Dow to continue to grind higher exists but the forecast is for a reversal anytime now. The same bearish forecast is being issued for the SP500, and Nasdaq reversing anytime now.

Bonds Sell - The current forecast for the 30 year T-Bond is to rally to the upside after its recent severe selloff after the election. Conversely bond yields are setup to decline at the same time after their very quick and large rise. The 30 year T-Bond rally bounce should see 155 to 158 area which would be another low-risk high-reward price area to sell short again at for the longer term.

US Dollar Index Hold - The US Dollar index has now rallied to the 101 plus price area now completed the forecasted price move. Very strong trader sentiment psychology indicators show the overbought optimism in the market suggesting top may be near at least short term. If the USD index does move higher, upside resistance is 101.797 to 102.150. Longer term the forecast is unclear yet until more daily price action can be seen. Major USD index support is now 100.39 to 100.51. Watch this price area for support strength or weakness and the potential for a longer term price forecast.

Gold Buy - Gold hit an intraday low of 1,174.44 on Friday November 25 slightly breaking what was forecasted as major support in the 1,180 to 1,200 area. Gold is now showing some strength now after its recent sell-off. Major resistance is now 1,337.81. Psychology and sentiment for precious metals have been extremely negative short-term suggesting a bottom may be forming for some upside potential possibly for an extended period of time that could last many months. The forecast is for prices to head higher again above 1,337,81.53 very possibly heading to 1,434 to 1,500 and possibly higher longer term. Buying gold now would be a very low-risk high-reward potential trade as long as you use a stop-loss of some amount if the price continues to decline more.