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The Bull Versus Bear Debate Rages On!

|Includes: DIA, GLD, QQQ, SPY, iShares 20+ Year Treasury Bond ETF (TLT), XLE

Markets in Review: Asian stocks were mixed on Friday with the Nikkei 225 ended their session at 9,561 - down 0.28% on the day, and the Hang Seng ended their session at 21,011 - up 0.07% on the day. European stocks moved higher on Friday. The FTSE 100 ended their session at 5,772 - up 0.48% on the day. The DAX ended their session at 6,750 - up 1.18% on the day. The CAC 40 ended their session at 3,189 - down 0.46% on the day. The yield on the 10-Year US Treasury traded between 1.996 percent and 1.954 below its 50-day and 200-day simple moving averages at 2.083 and 2.111. Gold rebounded from $1638.6 the Troy ounce to $1648.2 below the "death cross" defined by the 50-day simple moving average at $1686.9 being below the 200-day simple moving average at $1695.3. Crude oil rebounded from $102.45 per barrel to $104.27, staying below its 50-day simple moving average at $104.75. The euro versus the dollar traded up from 1.3132 to 1.3223 closing just above its 50-day simple moving average at 1.3203. The Dow Industrial Average rebounded to 13,082.54 back above its 50-day simple moving average at 13,009. The NASDAQ's rebounded to 3034.69 then declined to 3000.57 closing below its 50-day simple moving average at 3011.

Today's Four in Four Key Levels:
 

  1. Yields - The yield on the 10-Year US Treasury remains between its 50-day simple moving average at 2.083 and my semiannual pivot at 1.903.
  2. Commodities - Gold continues to trade between my semiannual pivots at $1635.8 and $1659.4, and below the 50-day / 20-day SMA "Death Cross" at $1686.9 and 1695.3. Crude oil remains influenced by quarterly, annual and semiannual pivots at $101.55, $103.58 and $104.84.
  3. Currencies - The euro versus the dollar is between my semiannual value level at 1.2980 and my quarterly risky level at 1.3366.
  4. Equities - Friday's closes were between five-week modified moving averages at 12,978 Dow Industrials, 1376.3 SPX, 3002 NASDAQ, 5229 Dow Transports and 811.00 Russell 2000. This keeps the Bull versus Bear Debate alive and kicking. The debate rages with the S&P 500 above my annual pivot at 1363.2 SPX but below my annual pivot at 836.15 Russell 2000.
  5. ValuEngine Valuations - Stocks are reasonably priced with 61.6% of all stocks undervalued with six undervalued sectors and ten overvalued sectors. Aerospace is 11.4% UV with, Computer & Technology 11.6% OV, Finance 10.0% OV, Medical 13.1% OV, and Retail-Wholesale 12.8% OV.

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