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The stock market close the week off on a positive note - January 28, 2022

January 30, 2022
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market update

What happen to the market today?

The stock market close the week off on a positive note after a lot of volatility.

Index	Jan. 24-28
Nasdaq	0.01%
S&P 500	0.77%
Dow Jones	1.34%
Russell 2000	-0.98%

The stock market enter bear market territory of more than 20% on Nasdaq and Russell 2000.

Correction

Nasdaq	23.81%
S&P 500	14.11%
Dow Jones	11.47%
Russell 2000	29.32%

Earnings season has started. Several big cap techs like MSFT, AAPL and TSLA had reported. Both MSFT and AAPL had good investor sentiment. The Federal Reserve sound more hawkish than what most investors expected. Market turn down on the day right after that. The market seems to have now priced in five rate hikes this year.

What is the current support level?

All the major market indices made a low on Monday. And most close near the high of the week. That could be potentially a bottom for the market correction. No one really knows. Only time will tell.

If major indices can punch above the 10 days moving average, then there may be more investors jumping back into the stocks.

NASDAQ - below its 50 days moving average line near 15200; current at 13770
S&P 500 - below its 50 days moving average line near 4640; current at 4431
DJIA - below its 50 days moving average line near 35560; current at 34725
RUSSELL 2000 - below its 50 days moving average line near 2190; current at 1968

Psychological levels

Nasdaq is now below 14000.
S&P 500 is now above 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 67 vs 118

#stocks 127 vs 337

The stock market breadth is still overwhelmed by a lot of distribution on a ratio of approximately of 1 to 4 which is better than last week of 1 to 10. We need to see accumulation in order for this market correction to end.

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

Which industry groups show strength?

There are signs of some industry group showing accumulation. The oil and gas industry groups are still strong.

Sector	Industry	Sub-group	#	Stocks
Technology	Technology	Computer Software: Prepackaged Software (Desktop)	1	PD
Technology	Technology	Computer Software: Prepackaged Software (Financial)	1	ACIW, FICO
Technology	Public Utilities	Telecommunications Equipment (Foreign)	3	RCI, TEF, VOD

Retail	Consumer Non-Durables	Packaged Foods	1	ADM
Retail	Health Care	Medical/Nursing Services	1	CVS

Industrial	Consumer Services	Marine Transportation	6	DAC, GOGL, GSL, KEX, MATX, ZIM
Industrial	Public Utilities	Power Generation	4	DTE, DUK, NWE, XEL
Industrial			2	NJR, SWX

Health	Health Care	Major Pharmaceuticals (Diversified)	1	JNJ
Health	Health Care	Medical Specialities (Supplies)	1	WST
Health	Health Care	Other Pharmaceuticals	2	ABC, MCK

Commodities	Energy	Oil & Gas Production: Drilling	1	PTEN
Commodities	Energy	Oilfield Services/Equipment	4	HAL, PUMP, RES, SLB
Commodities	Energy	Integrated oil Companies	6	CVX, MRO, PBR, RDS.A, WMB, XOM
Commodities	Energy	Oil & Gas Production (International)	5	APA, COP, HES, MUR, OXY
Commodities	Energy	Integrated oil Companies	2	TRGP, UGP
Commodities	Energy	Natural Gas Distribution	3	GLNG, MPLX, RTLR
Commodities	Energy	Oil & Gas Production (U.S.)	6	CLR, DVN, EOG, FANG, PDCE, VNOM

Financial	Miscellaneous	Business Services	6	AXP, EEFT, EVOP, MA, PAYS, V

Which industry groups from recent strength show weakness this week?

Below 50 days moving average
Industrial	Capital Goods	Military/Government/Technical	8	GD, HII, LHX, MRCY, NOC, TDG, TGI, TXT

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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