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The stock market started the year with a selloff - January 7, 2022

January 10, 2022
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What happen to the market today?

The stock market started the year with a selloff. This may not be a good sign but who knows. the year has just started.

Index	Jan. 3-7
Nasdaq	-4.53%
S&P 500	-1.87%
Dow Jones	-0.29%
Russell 2000	-2.92%

The Federal Reserve minutes show that they might be more aggressive in raising interest rates and even cutting their balance sheet by selling bonds. This seem to have spark a buying spree cyclical stocks as shown below in the energy and financial sectors.

What is the current support level?

Nasdaq fell hard below its 50 days moving average and is near its previous lows. This is not the way you want it to start in the new year.

S&P 500 also fell hard to its 50 days moving average and is trying to find support.

Dow Jones Industrial Average has been holding up the best and is sitting near its 21 days moving average.

Russell 2000 fell below its 10 and 21 days moving average.

NASDAQ - below its 50 days moving average line near 15600; current at 14935
S&P 500 - above its 50 days moving average line near 4660; current at 4677
DJIA - above its 50 days moving average line near 35800; current at 36231
RUSSELL 2000 - below its 50 days moving average line near 2280; current at 2179

Psychological levels

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

Stock market breadth - Accumulation vs Distribution for this week:

#industry groups 56 vs 76

#stocks 281 vs 408

The stock market breadth continue to be overwhelmed by more selling than buying, but as shown below some sectors are under accumulation.

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

Which industry groups show strength?

Market show accumulation mostly in the commodities and financial sectors.

Sector	Industry	Sub-group	#	Stocks
Retail	Consumer Non-Durables	Meat/Poultry/Fish	4	BRFS, CALM, HRL, TSN
Retail	Consumer Non-Durables	Packaged Foods	8	BGS, CAG, CPB, GIS, K, LW, POST, SJM

Retail	Consumer Services	Television Services	3	AMCX, DISCA, DISCK
Retail	Consumer Non-Durables	Farming/Seeds/Milling	2	MO, PM

Industrial	Capital Goods	Military/Government/Technical	8	GD, HII, LHX, MRCY, NOC, TDG, TGI, TXT
Industrial	Basic Industries	Major Chemicals: Plastics	3	DOW, EMN, TSE
Industrial	Consumer Services	Marine Transportation	2	GOGL, KEX

Commodities	Basic Industries	Precious Metals	4	BBL, BHP, RIO, VALE
Commodities	Energy	Oil & Gas Production (Canada)	2	CNQ, ERF
Commodities	Energy	Oil & Gas Production: Drilling	4	CHX, PTEN, RIG, VAL
Commodities	Energy	Oilfield Services/Equipment	3	HAL, KLXE, SLB
Commodities	Energy	Integrated oil Companies	8	BP, CVX, MRO, PTR, RDS.A, SNP, WMB, XOM
Commodities	Energy	Oil & Gas Production (International)	5	APA, COP, HES, MUR, OXY
Commodities	Energy	Integrated oil Companies	8	CEQP, DK, HFC, MPC, PBF, PSX, TRGP, VLO
Commodities	Energy	Oil & Gas Production (Royalty Trust)	2	PBT, SBR
Commodities	Energy	Natural Gas Distribution	4	GLNG, KMI, OKE, PSXP
Commodities	Basic Industries	Steel/Iron Ore	4	CLF, PKX, TS, TX

Financial	Finance	Major Banks (Midwest)	4	ASB, BY, UMBF, WTFC
Financial	Finance	Major Banks	13	BAC, BCS, BK, C, DB, GS, HSBC, JPM, RY, SMFG, TD, UBS, WFC
Financial	Finance	Major Banks (Northeast)	4	CFG, CUBI, MTB, WBS
Financial	Finance	Major Banks (Southeast)	13	ABCB, BPOP, FBP, FCNCA, FHN, HWC, OZK, PNFP, RNST, SNV, SSB, UBSI, UCBI
Financial	Finance	Major Banks (Regional)	10	CMA, FITB, HBAN, KEY, NTRS, PNC, RF, SIVB, TFC, USB
Financial	Finance	Major Banks (West)	13	CFR, COLB, CVBF, EWBC, FFWM, FHB, FIBK, GBCI, PB, PPBI, TCBI, WAFD, WAL
Financial	Finance	Finance: Consumer Services	2	CIT, TSLX
Financial	Finance	Investment Bankers/Brokers/Service	7	AMP, CS, HLI, LPLA, RJF, SCHW, SF
Financial	Finance	Major Banks (Savings)	8	BKU, FBC, ISBC, NWBI, PBCT, STL, SYF, WSFS
Financial	Finance	Life Insurance	4	AEL, MET, PRU, RGA

Which industry groups from recent strength show weakness this week?

Relative strength drops by 2%
Technology	Technology	Electronic Components	2	MU, SIMO

Relative strength drops by 6%
Technology	Technology	Computer Communications Equipment	-2	ANET, CAMP

Below 50 days moving average
Technology	Technology	Semiconductors	-7	AMBA, AMD, AOSL, AVGO, MPWR, MRVL, XLNX

Relative strength drops by 2%
Retail	Consumer Services	Catalog/Specialty Distribution	2	LNDC, MKC

Relative strength drops by 3%
Industrial	Basic Industries	Mining & Quarrying of Nonmetallic Minerals (No Fuels)	-2	EXP, MLM

Relative strength drops by 2%
Industrial	Consumer Durables	Building Products	-8	AWI, AZEK, BLD, BLDR, FBHS, MAS, SWIM, TREX

Relative strength drops by 6%
Industrial	Basic Industries	Forest Products	2	BCC, LPX

Relative strength drops by 10%
Industrial	Basic Industries	Paints/Coatings	-2	RPM, SHW

Below 50 days moving average
Industrial	Miscellaneous	Business Services (Outsourcing)	-4	CTAS, EXLS, PAYX, UNF

Below 50 days moving average
Industrial	Transportation	Trucking Freight/Courier Services	-5	ARCB, LSTR, ODFL, PTSI, SAIA

Relative strength drops by 3%
Industrial	Basic Industries	Electric Utilities: Central	3	AEP, ETR, POR

Relative strength drops by 10%
Industrial	Public Utilities	Water Supply	2	AWK, AWR

Relative strength drops by 10%
Health	Health Care	Major Pharmaceuticals (Ethical Drugs)	-2	NVO, ZTS

Relative strength drops by 4%
Commodities	Basic Industries	Precious Metals	-5	AEM, AU, FNV, PAAS, WPM

Relative strength drops by 1%
Financial	Consumer Services	Real Estate Investment Trusts	2	GPMT, LADR

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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