December 28, 2018
8:45 am EDT
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Please note that SIA Morning Minutes will not be issued on Monday December 31st, 2018 they will return on Wednesday January 2nd, 2019. We wish everyone a happy and safe New Yearâ€™s holiday.
US stock markets, which had been under heavy pressure for much of this month, continue to show signs of resilience. It would have been easy for the bulls to roll over again Thursday as markets started out lower in the wake of Wednesdayâ€™s single day points gain for the Dow. Instead, US bulls and bargain hunters shrugged off initial resistance and pushed US indices to a second straight gain, with the Dow rising another 260 point. This morning, US indices appear to be starting toward a third day of gains with Dow futures up about 100 points.
Just as stocks snowballed downward in recent seeks as tax loss selling, technical breakdowns, margin calls and fund redemptions pushed stocks lower, the easing of year-end selling pressure appears to have sparked a round of bargain hunting and short covering that could potentially continue into the new year.
The market rebound has started to broaden out beyond the US, also a positive sign. The S&P/TSX Composite staged a nice catch-up rally Thursday gaining 2.8% or 385 points. This morning, European markets have joined the rebound with the FTSE and DAX both up nearly 2.0%.
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