Is it the End of the longest bullish trend in history?

Daily Analysis - 27/12/2018

Potential full-blown Bearish trend may come earlier

On Wednesday the US markets meant to start the trading day in a higher tone. But the weak increase and the current market conditions had little effect and did not delete last Monday’s damages. The general market S&P 500 is about 20% off the high established earlier this year. We are now facing the start of potential full-blown bear-market and one of the reasons is that we are near the crucial 2350 level that may break before the end of the week. If the price breaks 2350 it would probably indicate the death of the longest bullish trend in history and probably will drive the markets down in 2019. One of the main reason for this sell-off is the concern of decreasing global growth that has been amplified by President Donald Trump and the FOMC.

Commodities are gaining momentum

The equities are booming this week but there is another asset that gains momentum by the investor's magnified risky appetite. The commodity markets also registered gains on Wednesday, accompanied by a positive performance in the crude oil markets. Their profits were supported by average performances in natural gas and the yellow metal gold. These assets posted profits notwithstanding a substantial retrace by the popular greenback. On Wednesday U.S. West Texas Intermediate and international benchmark crude oil futures registered their biggest daily performance in more than 24-months. On Wednesday Gold prices grew early in the trading session due to safe-haven buying supported by fears over the partial U.S. government shutdown.

Japanese stocks 3% up

On Thursday many Asian shares soared late in the afternoon. The overnight rise in stocks on Wall Street helped the popular Asia stocks to gain momentum to the bullish side. Topix gains 4.9% to close its day at about 1,501.60 while popular Japan's Nikkei 225, which has got out of the bear market territory this week, rose 3.8% to finish the trading day at about 20,077.60. The two indexes rose for the second day after their Christmas holiday turbulence.

Dow went up more than 1000 points

On Wednesday Stocks registered their greatest trading day in more than 10 years. The popular Dow Jones Industrial Average noted its biggest single-day point-earn in history. Profits in energy stocks but in retail as well, was the driving force behind the increases. For now, the stock market defeated its steep declines experienced in the previous session. The S&P 500 rose about 5% while the Dow ended about 1,086.20 points higher at 22,878.40. Yesterday was also the highest bullish movement based on percentage since the March of 2009.

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