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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
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...If the dots don't connect, gather more dots until they do...




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Monday, February 05, 2018

US Government Shutdown Looms on February 9th as World Market "SELL" Signal is Triggered

* See UPDATES below...

Another U.S. government shutdown looms this week on February 9th.

Will it...won't it? That's the $64,000 question as more volatility is in store for markets.

Given the fact that there are great political divides over a variety of policies, increased volatility in the markets, and, now, the information that's being revealed that may determine whether or not civil and/or constitutional rights were violated in the months leading up to and after the 2016 presidential election (and any political and/or legal fallout that may occur), will only add to the increased odds of chaos ahead, making future events less predictable.

Layer on top of that, the unlikely chances of any additional fiscal stimulus economic benefits that would be generated by programs such as infrastucture spending, over and above that which will trickle out into the economy from last year's Tax Cuts & Jobs Act, to offset a resulting increase in inflation and interest rates.

Furthermore, if we see a collapse in the US $, these odds will increase dramatically, so keep an eye on it, as I've mentioned recently here.

As well, further world market weakness, that we've seen of late, is noted on the daily chart of the World Market Index below (as of Friday's close). A new "SELL" signal has also been generated by the RSI, MACD and PMO technical indicators. Major support sits at 2000.

The following heat map shows how world markets are trading as of 12:20 pm ET today (Monday).

There's no doubt that a lot more uncertainty lies ahead...so, buckle up!

* UPDATE February 5  @ close...

Here's how a variety of U.S. markets closed today (equities down hard, volatility up, US$ up, 10-YR Bonds up, 10-YR Yields down, FNGU down, and FNGD up)...

How world markets closed on the heat map...

And, how the World Market Index closed...

Most U.S. Major Indices and Sectors are now underwater year-to-date, as shown on the following percentage gained/lost graphs...

The following graphs show percentages lost on the Major Indices and Sectors since they peaked 7 trading days ago (getting close to, or either in, "correction territory")...


Will the former equity market uptrend resume tomorrow?

Who knows, inasmuch as I wonder which of the above issues will materially change between today and tomorrow?

* UPDATE @ 11:55 pm ET...

The E-mini Futures Indices continue the plunge in overnight trading, as shown on the following daily charts...I guess these issues are still around...we'll see what tomorrow brings.

* UPDATE February 6 @ 11:30 am ET...

There have been some wild swings in overnight and this morning's trading sessions, so far, in the E-mini Futures Indices, as shown on the following daily charts...we'll see where they close today, more importantly.

* UPDATE February 6 after the close...

The blue arrow shows where these 4 E-mini Futures Indices closed today, as well as their early after-hours trading to begin tomorrow's candle.

Bearish momentum remains well below zero on all of them, hinting of further weakness ahead on this daily timeframe.