It was a bearish week for most US equity indexes, with net weekly changes ranging from -2.2% (Transports), -0.9% (Dow), -0.8% (R2K), -0.3% (SPX, Nasdaq comp'), to +0.3% (NYSE comp').
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
Nasdaq comp'
Dow
R2K
NYSE comp'
Trans
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Summary
Five US equity indexes were net lower for the week, with one net higher.
The Transports lead the way lower, whilst the NYSE comp' was resilient.
More broadly, the SPX, Nasdaq comp', Dow, NYSE comp', and Transports are holding above their respective monthly 10MA. The exception is the R2K.
Monthly momentum remains positive (if still weakening) in the SPX, Nasdaq comp', Dow, NYSE comp', and Transports. The exception is the R2K. It appears inevitable that momentum will turn negative in the Nasdaq comp' as of Feb'1st.
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Looking ahead
It will be a short four day trading week, with Monday closed for Martin Luther King, Jr. Day.
Earnings:
M - CLOSED
T - GS, SCHW, PNC, JBHT, IBKR
W - BAC, MS, UNH, PG, FAST, USB, AA, UAL, KMI
T - AAL, BKR, UNP, TRV, KEY, NFLX, CSX
F - SLB, ALLY
-
Econ-data/events
M - CLOSED
T - Empire state manu'
W - Housing starts, Phil' fed.
T - Weekly jobs, existing home sales, EIA Pet'
F - Leading indicators, *OPEX*
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| A fine winter's day |
Final note
We're two weeks into the year, with the SPX net lower by -103pts (2.2%). It certainly doesn't merit any hysteria. Even a brief foray to test major supports in the 4400/4300s would be tolerable.
If you read around, the crash callers are out there, having once again left their dirty little basements. Some of the issues they raise are valid, not least the supply chain crisis, which an increasing number of the mainstream (including the Fed) now recognise will drag into 2023.
As ever, s/t moves are tough to call, but regardless of whether the market does break a lower low within the next week or two, the broader trend for the collective of US equity indexes, has to be seen as bullish.
Or as I'll continue to ask.... would you prefer a Govt' bond? I mean seriously, for most, its either stocks, bonds, or cash. The latter is just going to be eroded by inflation, and if you don't want bonds, then all that is left is the equity market.
As noted in the Outlook for 2022, I do expect a few corrections this year. For the traders out there, that should make for a pretty good market.
For charts, charts, more charts, and whatever else I want to say... outside the control of the mainstream media hacks, you know where to find me.
For details and the latest
offers, see: https://www.tradingsunset.com
Have
a good weekend
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*the next post on this page will likely appear 5pm EST on Tuesday, Jan'18th
