The three major US stock indexes are in position to complete long-term bearish technical reversal patterns at the end of December.
Do technical patterns matter these day? Do the three have fundamental reasons to extend long-term uptrends in 2025? These discussions will be had early in the new year.
The Grains sector was quiet overnight, though there were signs Eastern Hemisphere buyers may have been interested in US soybeans.
Morning Summary: As we approach the end of year, month, and fiscal quarter for financial markets the red flags are flapping wildly in the winter wind over US stock indexes. A look at the futures markets tied to the big three indexes early Monday morning shows all are trading lower once again. While there is a lot of month left the next two days, as a good friend in the industry likes to say, from a technical point of view the three major indexes are in position to complete another set of bearish reversal patterns. All three posted new all-time highs in early December on follow-through hysteria/euphoria tied to the US election in early November[i]. However, at Friday’s close the S&P 500 ($INX) was down 61 points for the month and the Dow Jones Industrial Average ($DOWI) was 1,918 points below its November settlement. This put the DJIA within 1,345 points of last month’s low[ii]. The outlier is the Nasdaq ($NASX) as it still sat 504 points higher for the month. However, this high-tech index closed 298 points lower last Friday with its futures market down 44 points to start the day. As I talked about recently, it will be interesting to hear/read/see what those folks who told us how catastrophic the markets were the past four years have to say now.
