SUTTMEIER on the US CAPITAL MARKETS GMCReports@aol.com

This Week’s Markets Briefing By Richard Suttmeier – Dec. 15, 2014

10-Year 30-year Gold Crude Oil Euro/$$ $$ Yen GBP/$$

12/12/2014 2.085 2.740 1223.3 57.79 1.2451 118.64 1.5714 12/5/2014 2.308 2.966 1192.2 65.69 1.2286 121.37 1.5574

Weekly Chg -0.223 -0.226 31.1 -7.9 0.0165 -2.73 0.014 12/31/2013 3.026 3.964 1202.5 98.62 1.3754 105.29 1.6556

YTD Change -0.941 -1.224 20.8 -40.83 -0.1303 13.35 -0.0842 Value 2.263 A 2.928 W 1195.3 M none 1.2203 S 112.69 M 1.5444 W Levels 2.289 W 3.082 S 1156.1 W 1.2172 W 93.38 A 1.4456 A

3.258 Q 3.107 A 906.43 Q 92.12 S 3.283 A

Pivots 2.121 M 2.808 M 59.53 W 1.2389 M 1.5604 S

Risky 1.999 S 2.487 S 1613.0 S 78.19 M 1.3382 A 123.64 Q 1.6147 M Levels 1.779 A 1747.4 A 102.66 Q 1.3603 Q 125.64 W 1.6210 Q

106.48 S 1.6262 A 107.52 A

Five-Week 2.265 2.968 1203.3 72.66 1.2503 115.75 1.5802 Stochastics 5.2 / 4.9 4.4 / 3.9 3.3 / 3.9 0.9 / 0.7 1.0 / 1.2 9.3 / 9.3 0.8 / 0.8

Value Levels – Levels that are likely to hold on weakness. Pivots – Levels that could be tested as magnets. Risky Levels – Levels that are likely to restrain strength (W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A-Annual) Five-Week – The five-week modified moving average. Int Sent – 12x3x3 weekly slow stochastic reading on a scale of 0.0 to 10.0. (Below 2.0 is oversold, above 8.0 is overbought. Rising is positive. Declining is negative) Weekly Charts – Above the Five-Week with rising Stoch is positive. Below the Five-Week with declining Stoch is negative. U.S. Treasury yields – long-term yields declined last week as lower global equities markets flooded money into U.S. Treasuries as a “flight to quality.” In addition the coupon curve continued to “flatten” as investors anticipate that the FOMC will remove the term “considerable time” from their Fed Statement released Wednesday afternoon. The coupon curve is the spread between the yield on the 30-Year bond (2.740%) and the yield on the 2-Year note (0.548%). This spread ended last week at 219.2 basis points versus 232.2 last week and 358.0 at the end of 2013. Flattening is also symptomatic of stubbornly low. U.S. yields as global risk-adverse investors buy U.S. Treasuries as the only true safe haven 10-Year Note – (2.085%) An annual pivot is at 2.263% with a monthly pivot at 2.121%, and semiannual and annual risky levels at 1.999% and 1.779%.

30-Year Bond – (2.740%) Semiannual and annual value levels are 3.082% and 3.107% with a monthly pivot at 2.808% and semiannual risky level at 2.487%.

Comex Gold – ($1223.3) Weekly and quarterly value levels are $1156.1 and $906.43 with a monthly pivot at $1195.3 and semiannual risky level at $1613.0.

Nymex Crude Oil – ($57.79) A weekly pivot is $59.53 with the Jan. 2009 low at $33.20 when a gallon of regular gasoline dipped below $1.50. A monthly pivot is $78.19 with the 200-week simple moving average at $95.71.

The Euro – (1.2451) Semiannual and weekly value levels are 1.2203 and 1.2172 with a monthly pivot at 1.2389, and the 200-week simple moving average at 1.3346.

The Dollar versus Japanese Yen – (118.64) A monthly value level is 112.69 with quarterly and weekly risky levels at 123.64 and 125.64.

The British Pound – (1.5714) Weekly and annual value levels are 1.5444 and 1.4456 with a semiannual pivot at 1.5604, and monthly, quarterly and annual risky levels at 1.6147, 1.6210 and 1.6262.

SUTTMEIER on the US CAPITAL MARKETS GMCReports@aol.com

The Major Equity Averages

The Dow S&P 500 Nasdaq Trans Russell The SOX Utilities 12/12/2014 17,284 2,002.4 4654 8837 1153.45 671.33 597.56 12/5/2014 17,959 2,075.4 4781 9152 1182.43 703.12 596.72

Weekly Chg -675 -73.0 -127 -315 -28.98 -31.79 0.84 12/31/2013 16,577 1,848.4 4177 7401 1163.64 535.03 490.57

YTD Change 707 154 477 1436 -10.19 136.3 106.99 Value 16,301 S 1789.3 S 4642 S 8447 S 1139.81 S 608.02 S 553.35 Q Levels 14,835 A 1539.1 A 3972 S 7423 S 1131.49 M 512.94 S 548.70 A

13,467 A 1442.1 A 3471 A 6249 A 966.72 A 523.72 S 497.53 A

Pivots 683.28 M 687.65 Q

Risky 17,737 M 2080.3 S 4713 Q 9343 M 1244.88 W 742.62 W 606.94 M Levels 18,045 Q 2089.3 M 4784 M 9418 Q 1285.37 S 612.49 S

18,522 S 2094.6 Q 5081 W 9731 W 1292.59 Q 627.98 W 18,635 W 2172.3 W

Five-Week 17,467 2,023.9 4652 8880 1158.04 658.87 589.46 Stochastics 9.1 / 9.1 9.1 / 9.1 9.1 / 9.1 9.0 / 8.9 8.2 / 8.4 8.7 / 8.9 8.1 / 8.3

Value Levels – Levels that are likely to hold on weakness. Pivots – Levels that could be tested as magnets. Risky Levels – Levels that are likely to restrain strength (W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A-Annual) Five-Week – The five-week modified moving average. Int Sent – 12x3x3 weekly slow stochastic reading on a scale of 0.0 to 10.0. (Below 2.0 is oversold, above 8.0 is overbought. Rising is positive. Declining is negative) Weekly Charts – Above the Five-Week with rising Stoch is positive. Below the Five-Week with declining Stoch is negative. The Major Equity Averages Ended Last Week Straddling Their Five-Week Modified Moving Averages At, 17467 Dow Industrials, 2023.9 S&P 500, 4652 Nasdaq, 8880 Dow Transports and 1158.04 Russell 2000. The Nasdaq is the only average just above this key weekly moving average. All major averages remain overbought so this technical configuration is technically neutral. To signal a potential technical correction there needs to be weekly closes below all five-week modified moving averages with the 12x3x3 weekly slow stochastic readings declining below 8.0.

Dow Industrials: (17284) Semiannual and annual value levels are 16301, 14835 and 13467 with the Dec.5 all-time intraday high at 17991.19 and quarterly and semiannual risky levels at 18045 and 18421.

S&P 500 – (2002.4) Semiannual and annual value levels are 1789.3, 1539.1 and 1442.1 with the Dec.5 all-time intraday high at 2079.47, and monthly, quarterly and semiannual risky levels at 2089.3, 2094.2 and 2080.3.

NASDAQ – (4654) Semiannual and annual value levels are 3972, 3471 and 3063 with semiannual, quarterly and monthly pivots at 4642, 4713 and 4784, Nov.28 multiyear high at 4810.86 and the March 2000 all-time high at 5132.

Dow Transports – (8837) Semiannual and annual value levels are 8447, 7423, 6249 and 5935 with the Nov. 28 all-time intraday high at 9319.33 and monthly and quarterly risky levels at 9343 and 9418.

Russell 2000 – (1152.45) Semiannual, monthly and annual value levels are 1139.81, 1131.49, 966.72 and 879.39 with the July 1 all-time intraday high at 1213.55 and weekly, semiannual and quarterly risky levels at 1264.97, 1285.37 and 1292.59.

The SOX – (671.33) Semiannual and annual value levels are 608.02, 512.94, 371.58 and 337.74 with monthly and quarterly pivots at 683.28 and 687.85, the Dec.8 multiyear intraday high at 704.44 and weekly risky level at 742.62.

Dow Utilities: (596.56) Quarterly, annual, semiannual and annual value levels are 553.35, 548.70 and 523.72 with the Dec.10 all-time intraday high at 609.72, and monthly and semiannual risky levels at 606.94 and 612.49.