Two Zigs and Two Zags to end the first week +1.45% for the SPX.
The markets opened tepid but kept gaining strength and momentum to the upside through the day and to the close. So, where does that leave us with the major markets?
The S&P 500 price crossed over the 10-day and the 20-day moving average.
The NASDAQ and NASDAQ 100 price crossed over the 10-day moving average.
The Russell 2000 price crossed over the 10-day and the 20-day moving average.
The Dow Jones price crossed over the 10-day, 20-day and the 50-day moving averages.
The Eurozone price turned perfectly bullish.
The Emerging Markets price turned short-term bullish, and the price also crossed over its 200-day moving average.
The All-Country World Index price crossed over the 20-day and the 50-day moving averages.
This is how the trending heat map looks like after today’s market action:
This is most definitely a strong comeback day and a great way to end the first week of the new year. We will have to see if there is follow-through of the strength next week.
Out of the 4 trading days in the new year so far, 2 have been up and 2 down for the S&P 500. But the net effect of those zigs and zags is that the S&P 500 is up +1.45% at the end of first trading week of the year. Not bad given all the negative sentiments at the turn of the year. Of course, it is too early, and as stated above, we need to see follow-through of the strength.