Daily market review Jan 2nd, 2024 ( NDX fall by 1.5% , Equal weighted outperform cap weighted counter part )
Board market overview
NDX plunged by 1.7%, and S&P 500 fell by 0.57. Small & mid cap, Equal weighted outperformed Cap-weighted counterpart.
1st trading day of the year was supposed to be bullish day according to seasonal calendar but what happened ??
At 1st sight, it might be Apple getting downgraded by analyst because of lacklustre apple sales, but this concern has been there
In any case, writers and readers of this blog give more weight to the technical analysis to glean the signal from noise. Because sometimes, Analyst upgrade and downgrade is occasionally timed to facilitate certain institutional objective.
Anyhow, the warning sign has been shown in my previous blog, notably defensive sector has been outperforming offensive sectors and pulling the SPX higher of late. Therefore this short term pull back should not come as a surprise.
S&P 500 sectors.
That’s a giant bullish bar in defensive sectors ( Utilities, staples ). While technology fell the most and looked like it could breach the 20day MA. Will there be follow through ? we will have to see in the next few days
MOVE index
That’s a quite a big MOVE in the MOVE index .. it has risen by 10.8% in a single day and close at 128 level.
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