How long Dow jones will keep its bull?

Dow Jones rose above 23000 points on Wednesday by IBM stock supporting. U.S. stock market seems actively rise up but how long it will keep bull trend. In my opinion, there are two main factors which may support U.S. shares: tax reform and new president of central bank. According to the beige book, U.S. economy is stable and labor market is tightest but it does not find much evidence about higher inflation. Moreover, tax reform which will reduce tax may boost higher profit of individual and companies so it may give positive for shares in New York stock market.
In contrast, I think today Dow Jones may rest after its best growth rates since 2009 because the rising oil price (U.S. oil rig count at 00.00 GMT+7) combined with the existing home sales may give negative for USD and stock market. I also suggest to listen Yellen’s speech at 06.30 on Saturday as New York Fed President William Dudley commented that the central bank was on course to meeting its interest rate forecast for 2017. U.S. dollar may become weaker compare with euro since investors may positively focus on the European Central Bank meeting next week. However, the tension in Spain may give negative for Madrid stock exchange. If Catalan really declares of Independence, it will strongly effects economy in Spain because of it is 20% of country economy.
Today maybe a good day for Toronto stock market and Canadian dollar by good forecasting of Core retail sales at 19.30. Loonie may have a strong bearish trend from the reversal head and shoulders pattern. It may fall down to 1.243 in the future.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review