The Market Bull – November 20, 2018
Another bruising day on the street as the major averages close with large losses on little news, and for now an absence of fear. Volatility as measured by the VIX Index has risen sharply of late to reach the low 20’s, crisis usually doesn’t occur until this series breaks 30. That said the major averages are rapidly approaching key support levels, 2,600 for the Standard and Poors 500 Index and 6,700 for the NASDAQ. Should these levels be breached the VIX could easily break 30 and crisis could follow. Crypto currencies fell hard in early trade as Bitcoin briefly tested $4,500.
Residential construction activity increased in October, housing starts advanced 1.5% to 1.228 million units annualized. Permits fell .6% to 1.263 million units annualized. Completions fell again down 3.3% to 1.111 million units annualized, a 5th decline in the last 6-months.
At the regional level starts in the West fell 4.6% in October but are still up 10.6% from October 2017.
Standard and Poors 500 Index closed at: 2,641.89 down 48.84
NASDAQ finished the day: 6,908.82 down 119.65
Gold ended trading at: $1,221.90 up $3.40
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