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The stock market was decimated into correction territory - January 21, 2022

Q: What happen to the market today?

The stock market was decimated with huge losses this week .

January 22, 2022
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market update

What happen to the market today?

The stock market was decimated with huge losses this week.

Index	Jan. 18-21
Nasdaq	-7.55%
S&P 500	-5.68%
Dow Jones	-4.58%
Russell 2000	-8.07%

The stock market enter technical correction of more than 10% on Nasdaq.

Correction
Nasdaq	17.79%
S&P 500	9.63%
Dow Jones	7.96%
Russell 2000	23.69%

Earnings season has started. Several big cap techs will be reporting including MSFT, AAPL and TSLA. The Federal Reserve will also be having their scheduled meeting to decide what to do next. This will be crucial for market direction. Will there be a surprise rate hike to try to contain inflation?

What is the current support level?

Nasdaq lost support at its 200 days moving average.

S&P 500 also fell slightly below its 200 days moving average. Watch for rebound soon. If not, we may see more downtrend.

Dow Jones Industrial Average fell below its 200 days moving average.

Russell 2000 deteriorate much further below its 10 and 21 days moving average.

NASDAQ - below its 50 days moving average line near 15600; current at 13768
S&P 500 - below its 50 days moving average line near 4660; current at 4397
DJIA - below its 50 days moving average line near 35800; current at 34265
RUSSELL 2000 - below its 50 days moving average line near 2280; current at 1987

Psychological levels

Nasdaq is now below 14000.
S&P 500 is now below 4400.
Dow Jones Industrial Average is now below 35000.
Small cap Russell 2000 is now below 2000.

Stock market breadth - Accumulation vs Distribution for this week:

#industry groups 1 vs 140

#stocks 20 vs 955

The stock market breadth is overwhelmed by a lot of distribution.

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

Which industry groups show strength?

There is no industry group showing accumulation.

Which industry groups from recent strength show weakness this week?

Below 50 days moving average
Technology	Technology	Semiconductors (Equip)	-12	AMAT, ASML, ENTG, FORM, ICHR, KLAC, LRCX, MKSI, ONTO, TER, UCTT, VECO

Below 50 days moving average
Technology	Consumer Durables	Telecommunications Equipment	-5	CIEN, CLFD, INFN, LITE, VIAV

Relative strength drops by 7%
Retail	Consumer Services	Television Services	-2	DISCA, DISCK

Below 50 days moving average
Industrial	Basic Industries	Major Chemicals: Plastics	-2	EMN, TSE

Relative strength drops by 4%
Health	Health Care	Other Pharmaceuticals	3	ABC, MCK, OMI

Relative strength drops by 1%
Commodities	Energy	Coal Mining	-5	ARCH, BTU, CNX, HCC, METC

Relative strength drops by 4%
Commodities	Basic Industries	Precious Metals	-4	AA, CCJ, FCX, MP

Below 50 days moving average
Commodities	Energy	Metal Fabrications	2	FTI, GEOS

Below 50 days moving average
Financial	Finance	Major Banks	-7	C, DB, GS, JPM, BAC, BCS, BK

Below 50 days moving average
Financial	Finance	Major Banks (Southeast)	-13	FBK, FCNCA, FHN, HOMB, LOB, OFG, OZK, RNST, SNV, SSB, UCBI, ABCB, AUB

Below 50 days moving average
Financial	Finance	Major Banks (West)	-11	CFR, EWBC, FFWM, FIBK, FRC, GBCI, HMST, PB, SI, WAFD, WAL

Below 50 days moving average
Financial	Capital Goods	Homebuilding	-17	BZH, CCS, DFH, DHI, GRBK, HOV, KBH, LEN, LGIH, MDC, MHO, MTH, NVR, PHM, TMHC, TOL, TPH

Below 50 days moving average
Financial	Finance	Finance: Consumer Services	-3	CGBD, TSLX, WD

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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