The first trading week of the year kicked off with a bang as we saw both buyers and sellers step up and exert control during the shortened holiday trading week.
A lot of market commentators were gushing about the “first five trading days’ indicator until geopolitical news came in on Friday leaving some with egg on their face.
As a refresher, the premise goes if stocks finish the first five days higher, the S&P 500 has been positive more than 80% of the time at year-end with an average gain of about 13%, according to Stock Trader’s Almanac.
That being said as I’ve been stating over the past couple of months the SPY, DIA, and QQQ are all trading “momentum and up” on the monthly charts so the longer-term trend is still to the upside and this gives more weight for the January Effect to kick in.
In this week’s video, I examine the last week’s price action on major US indices to see what it can tell us about the coming week and month.
I also examine some longer timeframe charts for some larger moves that may be worth adding to your watchlist.
Watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD BTCUSD ETHUSD EEM and more for the week of Weekly Market Outlook for – January 6 – 10, 2020.
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