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Research >> MCBOSS CAPITAL >> US stock market news today - 2021 November >> The stock market is holding near recent highs - December 31, 2021
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The stock market is holding near recent highs - December 31, 2021

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What happen to the market today?

The stock market is holding near recent highs as it closes the year with big performance gains.

Most of the major indices deliver soft gains this week.

Index Dec. 27-31
Nasdaq -0.05%
S&P 500 0.85%
Dow Jones 1.08%
Russell 2000 0.17%

2021 performance - S&P 500 outperformed the other major indices.

Year 2021
Nasdaq 21.39%
S&P 500 26.89%
Dow Jones 18.73%
Russell 2000 13.69%

There is no surprise 2021 was the year of the energy sector as it turns out the best performance. As mentioned in previous Youtube video below, defensive sectors have done well in December 2021. Will the stock market continue to be defensive in the new year as the general market prepares for Federal reserve to continue to reduce bond buying and raising interest rates possibly in June? Will inflation get more heated causing the Fed to react more aggressively? Or will the economy show stronger signs of growth and recovery while companies show top and bottom line strength? Only time will tell. 

Which sectors will lead in the new year? Will growth, defensive or cyclical stocks lead? Will big cap stocks continue to outperform small cap stocks? Our strategy continues to focus on the daily and weekly action of the market. As market takes a breather going into the new year, it is the best to see what the market will do next and follow the trend. 

Happy trading and investing 2022. 

What is the current support level?

Nasdaq is pulling back to near its 50 days moving average after rebounding above it the previous week. Watch to see whether it will rebound in the new year.

S&P 500 is slightly off its new closing high as it tries to hold on. This is a bullish signal.

Dow Jones Industrial Average also hit new closing high this week and pulls back slightly.

Russell 2000 continue to sit above its 10 and 21 days moving average. This is a good sign

  • NASDAQ - above its 50 days moving average line near 15600; current at 15644
  • S&P 500 - above its 50 days moving average line near 4660; current at 4766
  • DJIA - above its 50 days moving average line near 35700; current at 36338
  • RUSSELL 2000 - below its 50 days moving average line near 2280; current at 2245

Psychological levels

  • Nasdaq is above 15000.
  • S&P 500 is now above 4700.
  • Dow Jones Industrial Average is now above 36000.
  • Small cap Russell 2000 is now above 2200.

Stock market breadth - Accumulation/Distribution for this week:

#industry groups 13 vs 2
#stocks 74 vs 36

The stock market breadth continue to be lackluster but has improve somewhat. Lack of distribution is a good sign. We hope to see more stocks be accumulated if this rally were to continue to succeed in the new year.

Which industry groups show strength?

Market didn't yield any accumulation this week due to low volume trading in this holiday week.



Which industry groups from recent strength show weakness this week?

Relative strength drops by 5%
Computer Sftwr-Design Technology Technology Computer Software: Prepackaged Software (Design) 2 ADSK, ANSS
Relative strength drops by 2%
Computer Sftwr-Medical Technology Technology EDP Services (Medical) 2 CERN, CHNG
Relative strength drops by 4%
Elec-Misc Products Retail Capital Goods Industrial Machinery/Components 5 EMKR, IDCC, ST, SYNA, ZBRA
Below 50 days moving average
Food-Meat Products (defensive) Retail Consumer Non-Durables Meat/Poultry/Fish 2 HRL, TSN
Relative strength drops by 1%
Leisure-Lodging Retail Consumer Services Hotels/Resorts (Lodging) 3 H, HLT, WH
Relative strength drops by 5%
Leisure-Services Retail Consumer Services Marine Transportation 8 CCL, CUK, EDR, LYV, NCLH, RCL, VAC, WMG
Relative strength drops by 6%
Retail-Major Disc Chains Retail Consumer Services Department/Specialty Retail Stores 2 COST, TGT
Relative strength drops by 2%
Transportation-Airline Retail Transportation Air Freight/Delivery Services 6 AAL, ALGT, BLDE, RYAAY, SKYW, UAL
Relative strength drops by 10%
Comml Svcs-Advertising Industrial Technology Advertising 3 CRTO, IPG, OMC
Relative strength drops by 3%
Elec-Contract Mfg Industrial Technology Electrical Products 2 JBL, SANM
Relative strength drops by 13%
Security/Sfty Industrial Consumer Services Diversified Commercial Services 3 ADT, ARLO, LAKE
Relative strength drops by 8%
Transport-Air Freight Industrial Transportation Air Freight/Delivery Services 2 AAWW, UPS
Relative strength drops by 3%
Comml Svcs-Healthcare Health Finance Specialty Insurers 3 CRVL, PINC, VCRA
Relative strength drops by 6%
Medical-Biomed/Biotech Health Health Care Major Pharmaceuticals -12 AERI, ALNY, ANIK, CRSP, INO, LPCN, QURE, RCKT, SPPI, SRNE, SURF, TRVN
Relative strength drops by 5%
Medical-Diversified Health Health Care Major Pharmaceuticals (Diversified) 2 ABT, JNJ
Relative strength drops by 4%
Chemicals-Agricultural Commodities Basic Industries Agricultural Chemicals 3 AVD, CF, NTR
Relative strength drops by 1%
Insurance-Life Financial Finance Life Insurance 2 RGA, VOYA



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