JFarrish 01/25

Indexes Close at New Highs OUTLOOK: January 25th The major indexes push to new highs on Tuesday following a modest turn to the upside as the treasury bond fell, the dollar rose and  money rotated from safety to growth stocks with the small caps (IWM) leading the move higher gaining 1.5% on solid volume.  Why the change of heart from investors? Some gave credit to Trump signing the Keystone & Dakota Pipelines with the stipulation they use American Steel... reinforcing his promises to keep jobs and goods in America as much as possible. That gave a positive sentiment to the markets overall. While nothing was dramatic about the day, it did have a different energy in the charts and on Wall Street... the futures are pointing higher and the positive sentiment may carry over today.  Watching how it unfolds with another attempt at reestablishing the uptrend with the new highs. Seven of the eleven sectors ended higher for the day with  materials (XLB) leading the charge higher on the pipeline deal.   The chart reflected the move with a breakout move and a new high. Joining the upside move was financials (XLF) and energy (XLE) as both bounced off support to reestablish the positive bias to the sectors.  The S&P 500 index closed at 2280 up 14 points and attempting to push to new highs again. Gold (GLD) was weaker on the day but remained near the $115.17 mark. The dollar was stronger putting some pressure on the metal. The dollar index (DXY) bounced back above the 100.75 support despite the negative tone of the day. Pressure has been on the dollar (UUP) the last month as the uncertainty grows around the Fed and Washington.  The emerging markets (EEM) jumped 1.5% Monday and completed the double bottom pattern with a positive move and follow through on Tuesday.  The Volatility Index (VIX) moved lower again and closed the day at 11.07 and back near the lows. The anxiety surrounding the current events seemed to subside on Tuesday and investors were willing to return to a 'risk on' attitude...  Subscribers get  >>more KEY INDICATORS/SECTORS TO WATCH Not Yet a subscriber?