Unexpectedly Intriguing!
31 October 2016

In the fourth week of October 2016, the S&P 500 ended the week lower than it began, as stock prices also fell from the level at which they closed in Week 3.

But that's not what people will remember about the market close at the end of the week, since the S&P 500 only dropped on Friday, 28 October 2016 in response to what we would describe as a political noise event.

And since politics rarely ever drive stock prices, the market experienced little more than a hiccup in terms of its typical daily volatility.

Alternative Futures - S&P 500 - 2016Q4 - Standard Model with Connected Dots Overlay - Snapshot on 2016-10-28

In the absence of other such noise events, or changes in fundamental factors that could more seriously influence stock prices, we can reasonably expect stock prices in the near future to converge with the red-dashed line trajectory we sketched on the chart above two weeks ago. After that happens, stock prices will more likely than not resume their generally downward trajectory, although the only thing we would really expect is that they fall somewhere within the red-shaded range we've indicated on the chart above, consistent with our assumption that investors will continue to focus on the current quarter of 2016-Q4 and will make their investing decisions in accordance with its corresponding expectations.

Although the week was, by far, the busiest to date at this point of 2016-Q4's earnings season, there weren't all that many headlines with market moving potential during the week. The handful that we identified are listed below.

Monday, 24 October 2016
Tuesday, 25 October 2016
Wednesday, 26 October 2016
Thursday, 27 October 2016
Friday, 28 October 2016

For a more complete picture of the week that was, Barry Ritholtz identifies what he saw as the positives and negatives of the week's market and economic news.

Labels: ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.