Closing the week on Friday continued the weekly trend. We didn’t see or learn anything new. The UK Parliament was expected to vote for Brexit, and the stock markets, equally expected, made new highs.
Chart of the Day S&P 500
The only thing that broke out of the general trend is a sharp increase in the number of active drilling rigs in the U.S. a week before December 20.
According to the statistics published by Baker Hughes today:
• the number of oil units increased by 18 to 685..;
• the number of gas installations has been reduced by 4 to 125..;
• The total number of installations increased by 14 to 813.
This is the highest increase in the last 21 months. While the number of rigs in operation in the U.S. has declined by about 22% since the beginning of the year. And that’s a sharp negative signal for oil bulls.
Failing to consolidate above the 200 Daily Moving Average, the euro is expected to continue falling, moving below 1.11. However, one should be extremely careful. The last shortened week of the year will be low liquidity. Most traders are leaving the trading floors in anticipation of Christmas. Therefore, any strong price spike in both directions is possible.
The only question that remains unclear is whether the American stock market will close next Friday at the highs of the month, year and history. Or someone will get nervous and start massive profit taking after 10 years of consecutive growth.
What’s waiting for us today?
05.30 Business Activity Index in all sectors of Japan for October
14.30 US Durable Goods Orders for November
14.30 Gross domestic product in Canada for October
16.00 New home sales in the United States in November
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