Good Morning,

All main U.S. indices hit record highs for the first time since 1999, led by a rally in energy stocks. Dow +0.47% to 18,95.24. S&P +0.7% to 2,198.45. Nasdaq +0.89% to 5,368.70. A triple record on Wall Street. Energy stocks led the gains on Wall Street Monday, with the three major indexes closing at record highs simultaneously.

Oil prices reached a monthly peak today and hit their highest level since October. The push higher came after several OPEC producers expressed optimism that an output agreement would be reached by the group’s November 30th meeting. Optimistic comments from Russia’s Vladimir Putin also supported prices, they will meet this month to make a final decision, right now the optimism is on the air, and we can see in the reaction of all the markets. The stocks related to energy are benefiting nicely and the crude prices surge back towards $50 a barrel, in this point is the first resistance level to pass.

Fortunately, the seasonally strongest time of year is now just beginning. Because a report by the Bespoke Investment Group (“Thanksgiving Returns,” November 16, 2016) shows that in the last seven years of the current bull market, the S&P 500 has risen by an average 1.55% during the week following Thanksgiving and an average +3.68% for the five-week span from Thanksgiving to New Year’s Eve.

In consequence also the stocks markets in Europe started higher on Tuesday, following record highs on Wall Street and expectations that OPEC members will reach an agreement over an output cut. But in Europe the indices are trading very far away of the maximuns, but very close of the most important resistance of all the year: In Dax Germany the higher levels is at 10.800, EU Stoxx at 3.100 and in the FTSE100 at 6.911, so today we will see if the optimistic is also in Europe or not.

SP 500

The S&P 500 index broke above the resistance level of 2,180-2,190 yesterday. The next resistance level is at 2,210-2,225. On the other hand, support level is at 2,170-2,180, marked by previous resistance level. Expectations before the opening of today’s trading session are positive, with index futures currently up 0.3-0.4%. The European stock market indexes have gained 0.5-0.7% so far.


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USD/JPY’s buying pressures are important. The pair is making new highs day after day. Hourly support is given around 110.09 (18/11/2016 low). Stronger hourly support lies at 108.56 (17/11/2016 low). Expected to see further upside moves. The first resistance level is at 111.15.


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