E Daily Markets Forecast Outlook – Monday, Dec. 12

December 14 FOMC Interest Rate Decision – Consensus Estimates and Futures are Indicating an Increase  

Stocks Hold to Buy – The Dow Jones and SP500 indexes continued higher last week although less and less NYSE stocks were participating in the uptrend which is the advance-decline line. The Nasdaq has been lagging but is forecasted to head higher too near-term. Nonetheless, of the generally weak internal indicators, the major market indexes are forecasted to continue higher for the time being. 

Bonds Buy Short-Term Sell Long-Term – The 30-year T-Bond continued to grind a little lower last week. 147 to 148 is first support currently with further major support at the 145 area. After the severe sell-off after the election results, the forecast short-term is for a bounce back higher to possibly the 161 area. Longer-term the forecast is down. If the 145 support price area breaks look for much lower prices again.

US Dollar Index Hold Short-Term Possible Buy Long-Term –  The US Dollar Index continues to hold support with the potential to head higher. Near-term support is 99.695 to 99.960. Longer term major support is at 96.00. On December 08 the index hit 99.49 intraday before closing higher at 101.12. 

Gold Silver Buy – Gold continues to consolidate in the 1151 to 1161 area. Sentiment is extremely negative on gold and silver currently after the large sell-off after the election. 1198 is current resistance, and if and when this price level breaks out, the forecast is for higher prices. A buy long position at current prices with a 8% maximum stop-loss would be a very low-risk-high-reward trade to make on gold and silver right now.