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

January 02, 2022
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market update

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.

Check out our course How to measure or calculate stock market breadth.

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

Disclaimer: MCBOSS CAPITAL provides financial education and information research. None of this information should be used for investment purpose. Please seek professional advice. Information provided may not always be accurate.

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