Ralph Acampora CMT

Everyone is entitled to dignity and respect, no matter who they are, whom they love, or how they identify.

Folks, today is a good day for our economy. We learned the economy created 339,000 jobs last month – bringing us to over 13 million jobs since I took office. That's more jobs in 28 months than any President has created in a four-year term. The Biden economic plan is working.

Jimmy Carter, the oldest living former president in U.S. history, turns 97 years old today. See his life in pictures: abcn.ws/3jpxENa

Are you sitting down? Because I’m about to say something that can be pretty shocking, at least in Washington: I believe in science. So I know that climate change is real. And we have to fight this crisis with everything we’ve got.

The S&P 500 went into overbought territory (RSI over 70) on January 15th. Thus a pause/correction was expected but now with the coronavirus, global markets are under heavy pressure. The S&P 500's 50 day and 200 day moving averages are at 3214.20 & 3085.66 respectively.

PepsiCo Inc. (PEP-140.71) is now trading at an all-time new high after breaking up from an impressive consolidation pattern that began in September 2019. Targets to the 150 to 160 area are expected.

Precious Metals Basket (GLTR-80.71) broke out of a major base formation (see monthly chart); it is now at a level not seen since April 2013. There is no resistance until the low 90s.

The DJ Utility Average is scoring an all time new high; the DJ Transportation Average is making a new 2020 high - its all-time high was made back on 9/14/18 at 11,570.84. The market is broadening out and supporting the late 2019 positive sector rotation.

So far the scary tensions between the U.S. and Iran seem to be easing and the market is reacting in a positive manner. Just remember that we are still at or in overbought territory and who knows what Iranians and/or their surrogates might do in the days ahead. Be attentive.

The rising tension in the Mid-East is hitting a market that is already overbought and due for a normal pause; therefore, this correction is going to be quicker and perhaps deeper because of all the uncertainty surrounding any Iranian reaction(s).

Rotation, Part V: Financials (XLF- 30.78) broke out in Nov. 2019 and is about to register an all-time new high. This renewed strength and impressive leadership is expected to support the continuation of the secular bull market in 2020. An objective to the mid-to-upper 30s seen.

Rotation, Part IV: European markets are playing a game of catch-up: Germany (EWG-29.40) now has an objective to the mid 30s; France (EWQ-32.71) is about to retest its Janu. 2018 high and then move to the upper 30s. England (EWU-34.10) has a target to the upper 30s.

Rotation, Part III: Micro-Cap (IWC-99.49) was in a one-year trading range until mid Dec. 2019. This impressive upside break-out implies at least a retest of its all-time high of 110.15.

Rotation, Part II: Emerging Markets (EEM-44.87) had been in a neutral range for about two years until late last 2019. This recent strength has taken it back to its June 2018 level. It now has an upside target to low 50s.

Rotation, Part I: Gold (GLD-142.90) reaccumulated during its consolidation phase that took place in Nov./Dec.. In late Dec. when it broke up from this area. it also broke its major downtrend. This renewed strength suggests a move to its 160 level is readable.

The life-line of every secular market is "rotation". During the last two months of 2019 we witnessed this bullish activity take place once again - thus, the stage is set for another strong market, at least for the first half of 2020.

Impressive Sectors Today: Financials (XLF - 30.42) registered a new 2019 high and is less than a point away from scoring an all-time new high! Both Health Care (XLV-100.67) and Consumer Staples (XLP-62,81) are in all time new high territory today.

Another technical observation that can be made about this week's sell-off & rally is that the key market indexes either successfully retested their respective 50-day moving averages or never even got close to them. This week's action is considered a long-over due correction.

So far during today's sharp recovery rally, the Russell 2000 is actually registering a new 2019 high. Most other indexes are also coming very close to scoring new respective highs. Thus, this week's action, in sum, can be described as the long, over due, correction.

The following indexes created important near-term support levels at their respective Dec. 3rd intraday lows: S&P 550 = 3,070.33; NASDAQ Comp. = 8,435.40; S&P Mid-Cap = 1,969,17 and the Russell 2000 = 1,589.73.