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(Photo by Bryan R. Smith/AFP/Getty Images)

Last week we saw new all-time intraday highs for the Nasdaq Composite and Russell 2000, but another multiyear intraday low for China’s Shanghai Composite as a full-fledged trade war appears to be on the horizon.

The Dow Jones Industrial Average, S&P 500 and Dow Transports remain below their all-time intraday highs set in January.

Overseas, the Japan’s Nikkei 225, China’s Shanghai Composite, India’s Nifty 50 and the German DAX also set their 2018 intraday highs in January with the Chinese benchmark deep in correction territory, 15.7% below its year-to-date high.

The FOMC raised the federal funds rate to 1.75% to 2.00% last Wednesday and hinted that two more rate hikes would occur before the end of 2018. More important, and not discussed in the FOMC Statement, was the shrinking of the Federal Reserve balance sheet. Starting in October the Fed will be draining $50 billion a month from the banking system, which will mark the end of the bull market for stocks.

OPEC meets this week and could raise production quotas. Strength in Nymex crude oil has stalled but my annual value level of $63.81 held overnight.

As a market positive, the weekly charts for the five U.S. equity averages remain positive as Friday’s closes were above their five-week modified moving averages.

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(Photo by Bryan R. Smith/AFP/Getty Images)

Last week we saw new all-time intraday highs for the Nasdaq Composite and Russell 2000, but another multiyear intraday low for China’s Shanghai Composite as a full-fledged trade war appears to be on the horizon.

The Dow Jones Industrial Average, S&P 500 and Dow Transports remain below their all-time intraday highs set in January.

Overseas, the Japan’s Nikkei 225, China’s Shanghai Composite, India’s Nifty 50 and the German DAX also set their 2018 intraday highs in January with the Chinese benchmark deep in correction territory, 15.7% below its year-to-date high.

The FOMC raised the federal funds rate to 1.75% to 2.00% last Wednesday and hinted that two more rate hikes would occur before the end of 2018. More important, and not discussed in the FOMC Statement, was the shrinking of the Federal Reserve balance sheet. Starting in October the Fed will be draining $50 billion a month from the banking system, which will mark the end of the bull market for stocks.

OPEC meets this week and could raise production quotas. Strength in Nymex crude oil has stalled but my annual value level of $63.81 held overnight.

As a market positive, the weekly charts for the five U.S. equity averages remain positive as Friday’s closes were above their five-week modified moving averages.