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Daily Market Update for 1/10 Summary: Markets dipped in the morning, but the Nasdaq rallied in the afternoon to close the day with a small gain. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, January 10, 2022 Facts: +0.05%, Volume higher, Closing Range: 97%, Body: 45% Green Good: High closing range, end day in positive on higher volume Bad: Dip below the 200d simple moving average Highs/Lows: Lower high, Lower low Candle: Long lower wick under a thick green body, high closing range Advance/Decline: 0.55, about two declining stocks for every advancing stock Indexes: SPX (-0.14%), DJI (-0.45%), RUT (-0.40%), VIX (+3.41%) Sector List: Health (XLV +1.03%) and Technology (XLK +0.02%) at the top. Materials (XLB -1.02%) and Industrials (XLI -1.13%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets dipped in the morning, but the Nasdaq rallied in the afternoon to close the day with a small gain. The Nasdaq closed the day with a +0.05% advance. Volume was higher than the previous day, returning to the 50d average volume. The index dipped below the 200d moving average for the first time since the March 2020 correction. However, it recovered to close slightly higher for the day. That created a long lower wick under a 45% green body and a 97% closing range. There were almost two declining stocks for every advancing stock. All major indexes dipped in the morning and recovered in the afternoon, but only the Nasdaq finished the day positive. The S&P 500 (SPX) declined -0.14%. The Dow Jones Industrial Average (DJI) fell -0.45%. The Russell 2000 (RUT) lost -0.40%. The VIX Volatility Index rose +3.41%. Only two of the eleven S&P 500 sectors gained for the day. Health (XLV) rose +1.03% and Technology (XLK) gained +0.02%. At the bottom of the sector list was Materials (XLB -1.02%) and Industrials (XLI -1.13%). The US Dollar Index (DXY) rose +0.22%. The US 30y and 10y Treasury yields declined while the 2y yield advanced. High Yield (HYG) Corporate Bond prices advanced while the Investment Grade (LQD) Corporate Bond prices declined further. The put/call ratio (PCCE) rose to 0.753. The CNN Fear & Greed index moved to the Fear side of Neutral, but remained at Neutral. Three of the four largest mega-caps ended the day with gains. Alphabet (GOOGL) gained +1.21%. Microsoft (MSFT) and Apple (AAPL) had smaller gains of +0.07% and +0.01%. Amazon (AMZN) declined -0.66%. Intel (INTC) was the top mega-cap for the day, gaining +3.31%. Tesla (TSLA) was second on the mega-cap list, climbing +3.03%. Nike (NKE) was at the bottom of the list with a -4.16% decline. Zynga (ZNGA) blew away the Daily Update Growth List with a 40.67% gain after Take-Two Interactive (TTWO) announced a $12.7b acquisition of the company. That's almost twice the market cap for Zynga at the beginning of the session. Take-Two Interactive dropped -13.13% on the news. Surprisingly, the Growth List was mostly gainers. The biggest loser was DraftKings (DKNG) with a -4.07% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Three Fed members, including Fed Chair Jerome Powell, are scheduled to speak tomorrow. The EIA Short-Term Energy Outlook will be released at noon. Albertsons (ACI) will release earnings tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance Despite the morning dip, the index was in an uptrend the remainder of the day. If the one-day trend continues into Tuesday, we can expect a +1.81% advance. The trend line from the 12/18 high points to a -1.30% decline. The five-day trend line results in a -3.53% decline for Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was an odd day for the market. The Nasdaq dips below its 200d simple moving average, only to recover and close the day with a slight gain. More odd is the number of growth stocks that had significant gains for the day. Seeing big gains for Intel, Tesla and Adobe, while the indexes showed stress is perplexing. Were investors buying the dip and getting positioned back for growth? Or is it a bull trap and further selling is on the horizon? Based on the chart, the expectation for tomorrow is Sideways or Lower. The intraday uptrend (on higher volume) gives some hope, but the overall trend in the chart is still down. Stay healthy and trade safe!

Daily Market Update for 1/7 Summary: Payrolls and Unemployment data sent a blurry picture to investors on the pace of economic recovery. The uncertainty ended a volatile week with more decline while investors continue evaluate pending rate hikes from the Fed later this year. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, January 7, 2022 Facts: -0.96%, Volume lower, Closing Range: 20%, Body: 54% Red Good: Lower volume on decline Bad: Lower high, lower low, closing range Highs/Lows: Lower high, Lower low Candle: Medium size body in middle of candle, slightly longer upper wick Advance/Decline: 0.78, more declining than advancing stocks Indexes: SPX (-0.41%), DJI (-0.01%), RUT (-1.20%), VIX (-4.33%) Sector List: Energy (XLE +1.37%) and Financials (XLF +1.18%) at the top. Technology (XLK -0.92%) and Consumer Discretionary (XLY -1.67%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Payrolls and Unemployment data sent a blurry picture to investors on the pace of economic recovery. The uncertainty ended a volatile week with more decline while investors continue evaluate pending rate hikes from the Fed later this year. The Nasdaq declined -0.96%. Volume was much lower than the previous day and is the third day of lowering volume in a row. The candle has a 54% red body in between two similar upper and lower wicks. The upper wick is slightly longer. There were more declining than advancing stocks. The Russell 2000 (RUT) suffered the most significant loss today, declining -1.20%. The S&P 500 (SPX) dropped -0.41%. The Dow Jones Industrial Average (DJI) declined only -0.01%, helped along by large Energy and Financials stocks The VIX Volatility Index declined -4.33%. Energy (XLE +1.37%) and Financials (XLF +1.18%) were the top performing sectors for another day. Energy has been a top-two sector every day this week. Financials was in the top-two for three of the five days. Technology (XLK -0.92%) and Consumer Discretionary (XLY -1.67%) were at the bottom of the sector list today. Nonfarm Payrolls for December increased by only 199,000 compared to a 400,000 forecast by analysts. However, the unemployment rate declined to 3.9% whereas analysts only expected it to drop to 4.1%. The US Dollar weakened with the index (DXY) declining by -0.52%. The US 30y and 10y Treasury Yields gained for the day while the 2y yield declined. Yields are at their highest since the start of the pandemic. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices continue to decline (tracking along with treasury prices). The put/call ratio (PCCE) declined to 0.743. The CNN Fear & Greed index moved into Greed, but remains near neutral. The NAAIM money manager exposure index rose from 85.71 the previous week to 89.54 this week. Two of the four largest mega-caps gained today. Apple (AAPL) And Microsoft (MSFT) ended the day with 0.10% and 0.05% gains, but also had lower highs and lower lows than the previous day. Apple (AAPL) is getting resistance at its 21d EMA while the other three, including Amazon (AMZN) and Alphabet (GOOGL), are trading well-below both their 21d EMA and 50d MA. Alibaba (BABA) led the mega-cap list for another day, gaining +2.86% today. At the bottom of the list was Taiwan Semiconductor (TSM), declining -3.87%. Futu Holdings (FUTU) topped the Daily Update Growth List, advancing +6.20%. The list had quite a few gainers, but also quite a few losers. The most significant loss came from Chewy (CHWY), which declined -8.26%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There are no significant economic events on the calendar for Monday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq, closed just below the 15,000 area today. The level is a support/resistance area and the index bound up and down close to that market. If the index returns to the trend line from the 12/28 high, we can expect a +0.35% gain on Monday. If the one-day trend line continues, then we can expect a -0.74% decline. The five-day trend line leads to a -1.82% loss to start the week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up The whole week was a bit depressing for investors. It started off with a new year's rally as investors came back from the holiday. But the sentiment quickly changed and got worse with the Fed meeting minutes on Wednesday and mediocre economic data throughout the week. Hopefully the first week of the year isn't an omen for the rest of 2022. For Monday, expect sideways or lower based on the chart. Stay healthy and trade safe!

Daily Market Update for 1/6 Summary: Stocks stabilized a bit on Thursday after selling-off the previous day due to the Fed's hawkish meeting minutes release. Small-caps outperformed and investors bought dips in select growth stocks. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, January 06, 2022 Facts: -0.13%, Volume lower, Closing Range: 59%, Body: 20% Green Good: Support at 15,000. Lower volume on decline. Bad: Lower high, lower low Highs/Lows: Lower high, Lower low Candle: Indecisive spinning top candle Advance/Decline: 0.95, just slightly more declining than advancing stocks Indexes: SPX (-0.10%), DJI (-0.47%), RUT (+0.56%), VIX (-0.61%) Sector List: Energy (XLE +2.23%) and Financials (XLF +1.47%) at the top. Health (XLV -1.16%) and Materials (XLB -1.26%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Stocks stabilized a bit on Thursday after selling-off the previous day due to the Fed's hawkish meeting minutes release. Small-caps outperformed and investors bought dips in select growth stocks. The Nasdaq closed with a -0.13% decline. Volume was lower than the previous day. The candle has equal upper and lower wicks surrounding a thin green body of just 20%. The candle pattern is a spinning top that signals indecision among bulls and bears. Whether the trend continues or reverses will be determined another day. There were about equal number of advancing and declining issues. The Russell 2000 (RUT) was the only of the four indexes to gain, advancing +0.56%. The S&P 500 (SPX) declined -0.10% and the Dow Jones Industrial Average (DJI) fell -0.47%. The VIX Volatility Index remained elevated, falling just -0.61% today. Energy (XLE +2.23%) and Financials (XLF +1.47%) led the sector list again. The two sectors have outperformed in the first week of 2022. Health (XLV -1.16%) and Materials (XLB -1.26%) were the biggest losing sectors today. There were 10,000 more Initial Jobless Claims than expected with the total for the week ending at 207,000, showing some possible impact from the Omicron surge. More insight will come with tomorrow's payroll reports. The ISM Non-Manufacturing PMI print was 62.0 compared to a forecast of 66.9. The US Dollar index (DXY) rose +0.06%. The US 30y Treasury Yield declined while the 10y and 2y yields rose. High Yield (HYG) Corporate Bond prices rose slightly. Investment Grade (LQD) Corporate Bond prices continued to decline. Silver and Gold both declined. Crude Oil Futures are on the rise, tracking the energy sector higher. The put/call ratio (PCCE) rose to 0.792. The CNN Fear & Greed index is at Neutral. All four largest mega-caps declined. Apple (AAPL) closed below its 21d EMA. The other three are all below their 21d EMA and 50d MA. Alibaba (BABA) was the top mega-cap for the day, gaining +4.51%. Accenture (ACN) was at the bottom of the list with a -4.83% decline. There were many gainers in the Daily Update Growth List, bouncing of the previous day's losses. Beyond Meat (BYND) topped the list with a +14.65% advance. The company announced a deal to provide Beyond Chicken to Yum Brand's Kentucky Fried Chicken the previous day, but the reaction was delayed until today's positive session. Lemonade (LMND) was at the bottom of the list, declining -3.97%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead In the morning, focus will be on Payrolls and Unemployment data for December. Payrolls are expected to increase by 400k while the Unemployment rate is expected to decline to 4.1%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq bounced between support at 15,000 and resistance at 15,200 on choppy day that ended in indecision. The one-day trend line and a trend line from the 12/28 high points to a +0.62% gain for Friday. The give-day trend line points to a -0.65% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up There was a mix of bulls and bears in the market one day after the Fed's surprisingly hawkish meeting minutes. That left us with an indecisive candle on the Nasdaq. It could be the start of a reversal from here or a continuation in the current downtrend. The expectation for tomorrow is Sideways or Lower. Stay healthy and trade safe!

Daily Market Update for 1/5 Summary: All indexes and sectors decline in late afternoon trading after the Fed released its December meetings minutes that showed a higher-than-expected concern over inflation combined with the tightening labor market. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, January 05, 2022 Facts: -3.34%, Volume lower, Closing Range: 1%, Body: 91% Red Good: Lower volume on decline Bad: Close well below the 21d EMA and 50d MA Highs/Lows: Lower high, Lower low Candle: Almost all red body, small upper wick, no lower wick Advance/Decline: 0.18, more than five declining stocks for every advancing stock Indexes: SPX (-1.94%), DJI (-1.07%), RUT (-3.30%), VIX (+16.68%) Sector List: Materials (XLB -0.01%) and Energy (XLE -0.02%) at the top. Technology (XLK -3.07%) and Real Estate (XLRE -3.25%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview All indexes and sectors decline in late afternoon trading after the Fed released its December meetings minutes that showed a higher-than-expected concern over inflation combined with the tightening labor market. The Nasdaq dropped -3.34%. The index was already on the decline before the Fed meeting minutes made things worse. The candle is 91% red body with a small upper wick and the 1% closing range means no lower wick. There were more than five declining stocks for every advancing stock. The Dow Jones Industrial Average (DJI) held up the best, declining just -1.07%. The S&P 500 (SPX) fell -1.94%. The Russell 2000 (RUT) lost -3.30%. The VIX Volatility Index (VIX) rose +16.68%. All S&P 500 Sectors declined. Materials (XLB -0.01%) and Energy (XLE -0.02%) were the best performers. Technology (XLK -3.07%) and Real Estate (XLRE -3.25%) had the most significant losses. ADP Nonfarm Employment Change for December more than doubled the expectation, adding 807,000 payrolls compared to an expected 400,000. Both the Services PMI and Markit Composite PMI for December exceeded forecast. Crude Oil Inventories came in higher than expecting, signaling some softening of demand compared to the forecast. The US Dollar index (DXY) declined -0.10%. Long and short term US Treasury Yields rose sharply. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined. Aluminum Futures are on the rise. All four largest mega-caps declined for the day with Alphabet (GOOGL) having the most significant loss, falling -4.59%. Three of the four continue trading below their 21d EMA and 50d MA. Apple (AAPL) is testing the 21d EMA, but closed above the line today. Pfizer (PFE) was the top mega-cap of the day with a +2.02% gain. Salesforce.com (CRM) lost the most in the mega-cap list, declining -8.28%. The only two stocks in the Daily Update Growth List to gain today were Chinese stocks. Niu Tech (NIU) and Alibaba (BABA) gained +2.41% and +1.34%. The worst losers, GrowGeneration (GRWG), Roku (ROKU), and Enphase (ENPH) all declined more than 11%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The weekly Initial Jobless Claims numbers will be available before the market opens. Imports/Exports data will also be in view in the early morning. After the market opens, the ISM Non-Manufacturing Purchasing Managers Index will publish. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dove below several key support areas today, seemingly in a free-fall only stopped by the market closing. It's unlikely to happen in a single day, but if the index bounces and moves back toward the trend line from the 12/20 low, that would be a +4.76% gain. The five-day trend line is in decline, but the index would still gain +1.41% if it returned to that line. If the one-day trend continues, that would mean a -2.69% decline tomorrow with the index moving to the 200d moving average. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Despite having already anticipated bond tapering and rate hikes, Investors were surprised today after the Fed minutes showed an even more aggressive move to control inflation. We already felt the impact today on the changed outlook from institutional investors. The question that remains is how much adjustment is needed and to what extend that will continue to weigh bond and equity markets. The expectation for tomorrow is further correction. Lower prices for the Nasdaq. Stay healthy and trade safe!

Daily Market Update for 1/4 Summary: While most of the market dipped, cyclical stocks took the lead. Energy and Financials led the day while Industrial and Materials had gains after missing out on yesterday's momentum. The rotation shouldn't be a huge surprise after the lopsided gains the previous day and the selling signals of richly (dare we say over) valued growth stocks. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, January 4, 2022 Facts: -1.33%, Volume higher, Closing Range: 32%, Body: 68% Red Good: Closed above the 21d EMA and 50d MA Bad: Dip below the key moving averages, decline on higher volume. Highs/Lows: Higher high, Lower low Candle: Large red body with no upper wick Advance/Decline: 0.51, two declining stocks for every advancing stock Indexes: SPX (-0.06%), DJI (+0.59%), RUT (-0.16%), VIX (+1.87%) Sector List: Energy (XLE +3.46%) and Financials (XLF +2.63%) at the top. Technology (XLK -1.06%) and Health (XLV -1.32%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview While most of the market dipped, cyclical stocks took the lead. Energy and Financials led the day while Industrial and Materials had gains after missing out on yesterday's momentum. The rotation shouldn't be a huge surprise after the lopsided gains the previous day and the selling signals of richly (dare we say over) valued growth stocks. The Nasdaq lost -1.33%. Volume was higher than the previous day and returned to the 50d average. The candle is covered by 68% red body with no upper wick, as the index sold off immediately after the market opened. After dipping below the 21d EMA and 50d MA, the Nasdaq recovered to close above the two lines, creating the lower wick of the candle. There were two declining stocks for every advancing stock. The Dow Jones Industrial Average (DJI) had a record close, helped by large cyclicals to gain +0.59%. The S&P 500 (SPX) closed down -0.06%. The Russell 2000 (RUT) declined -0.16%. Both indexes held some gains from yesterday. The VIX Volatility Index (VIX) increased by +1.87%. Five of the S&P 500 sectors gained for the day, led by the four cyclical sectors. Energy (XLE +3.46%) and Financials (XLF +2.63%) were at the top. Technology (XLK -1.06%) and Health (XLV -1.32%) were the worst-performing sectors. The ISM Manufacturing Purchasing Managers Index (PMI) for December was 58.7, lower than the expected 60.0. JOLTs Job Openings for November was also lower than expected, showing 10.6 million, compared to the forecast of 11.1 million. API Weekly Crude Oil Stock showed much higher demand than expected. The US Dollar Index (DXY) increased by +0.06%. The US 30y and 10y Treasury Yields rose for the day while the 2y Treasury Yield declined. High Yield (HYG) Corporate Bond prices fell for another day. Investment Grade (LQD) Corporate Bond prices advanced slightly. Gold and Silver rose today after sharp declines yesterday. The put/call ratio (PCCE) increased to 0.611. The CNN Fear & Greed index is in Greed but continuing to inch toward Extreme Greed. All four largest mega-caps declined for the day. Only Apple (AAPL) remains above its 21d EMA and 50d MA after setting records the previous day. Toyota Motor Corporation (TM ) topped the mega-cap list with a +6.92% gain. Those gains come alongside huge days for Ford (F) and General Motors (GM), which gained +11.67% and +7.47%. Each of the three had separate positive news stories. Toyota topped GM in sales for 2021. Ford announced an increase in production for the all-electric F-150 pickup. GM rallied the day before the all-electric Chevrolet Silverado is to debut. Another auto manufacturer was at the bottom of the mega-cap list. Telsa (TSLA) had a -4.18% decline after gaining more than +13% the previous day. Only two stocks in the Daily Market Update Growth List gained for the day. Ehang Holdings (EH) gained +3.77%, and D.R. Horton (DHI) gained +0.44%. There were many losses greater than 5% on the list. Sea Limited (SE) had the most significant loss, declining -11.41%. It was just not a good day for growth stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead ADP Nonfarm Employment Change data for December will be available in the morning. After the market opens, we'll get the Markit Composite and Services Purchasing Managers Index data. Crude Oil Inventories will be available later in the morning. The Fed will release the December Meeting Minutes in the afternoon. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dipped below the 21d EMA, 50d MA, and the 15,600 support area before closing slightly above all three. That may provide some support for further gains tomorrow. If the index returns to the trend line from the 12/20 low, that would mean a +2.19% gain for Wednesday. The five-day trend line points to a -0.02% decline. Continuing the one-day trend would result in a -1.32% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up I didn't quite forecast a rotation yesterday, but it was in the back of my mind. Two things stood out. First, on a day with broad gains across the indexes and high advance/decline ratios, why were two cyclical sectors (Industrials and Materials) left out of the gains. I wouldn't expect them to lead for the day, but greater than 1% declines? The second signal was that several "darling" stocks with significant growth over the past year sold off yesterday. DataDog and MongoDb were two big decliners. It was a signal that investors were moving away from richly valued growth stocks and toward opportunities in undervalued small-caps and, as we saw today, value plays in cyclicals. There are likely more rotations to come as investors position for this year. Based on the chart, the expectation for the Nasdaq is Sideways or Lower tomorrow. Stay healthy and trade safe!

Daily Market Update for 1/3 Summary: Happy New Year! The first day of 2022 had indexes trading higher as money and trading volume came back into the market. Stocks broadly shared gains, but not all sectors benefited from the advances. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, January 03, 2022 Facts: +1.20%, Volume higher, Closing Range: 100%, Body: 53% Green Good: Close at intraday high, great advance/decline ratio Bad: Nothing Highs/Lows: Higher high, Higher low Candle: Long lower wick, underneath 53% green body, no upper wick Advance/Decline: 1.77, three advancing stocks for every two declining stocks. Indexes: SPX (+0.64%), DJI (+0.68%), RUT (+1.21%), VIX (-3.60%) Sector List: Energy (XLE +3.10%) and Consumer Discretionary (XLY +2.87%) at the top. Health (XLV -1.03%) and Materials (XLB -1.30%) at the bottom. Expectation: Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Happy New Year! The first day of 2022 had indexes trading higher as money and trading volume came back into the market. Stocks broadly shared gains, but not all sectors benefited from the advances. The Nasdaq finished the day with a +1.20% gain. The index closed at its intraday high, creating a 53% body in the upper half of the candle while the long lower wick formed in the first hour of trading. There were more than three advancing stocks for every two declining stocks. Small-caps in the Russell 2000 (RUT) outperformed, with the index gaining +1.21%. The S&P 500 (SPX) climbed by +0.64%. The Dow Jones Industrial Average (DJI) advanced +0.68%. The VIX Volatility Index (VIX) declined -3.60%. Five of the eleven S&P 500 sectors gained for the day. Energy (XLE +3.10%) and Consumer Discretionary (XLY +2.87%) were at the top of the list. Health (XLV -1.03%) and Materials (XLB -1.30%) were at the bottom. It's good to see the Energy sector leading, with the Financial sector also having positive gains along with the growth sectors. The US Dollar index (DXY) gained +0.58% on the first day of the year. US Treasury yields were sharply higher as investors moved back into equity instruments. High Yield (HYG) and Investment Grade (LQD) Corporate Bond Prices were lower, tracking lower along with treasuries (prices move opposite yields). Gold was also lower as the market increased exposure to riskier assets after the holiday. The put/call ratio (PCCE) dropped to 0.535. The CNN Fear & Greed index is back in the Greed range after being in the Fear range before Christmas. The NAAIM Money Manager Exposure Index moved up to 85.71 last week. Three of the four largest mega-caps gained. Apple (AAPL) made headlines with a record close and the first company to exceed $3 trillion in market cap. Amazing! Today's gain was +2.50%. Amazon (AMZN) advanced +2.21%, and Alphabet (GOOGL) rose +0.10%. Microsoft (MSFT) declined -0.47%. Apple and Microsoft are the only two trading above their 21d EMA. Today, Tesla (TSLA) topped the mega-cap list with a +13.53% gain. The company revealed that its number of car deliveries for Q4 smashed analyst expectations. Pfizer (PFE) was at the bottom of the mega-cap list with a -4.06% decline. Tesla also topped the Daily Update Growth List. Following Tesla was Ehang Holdings (EH) which gained +6.64%. There were surprisingly more decliners than advancers in the list. DataDog was at the bottom of the list with a -8.02% decline. Those declines were common among high growth, richly valued stocks. Today was not a good start for those looking to leave behind 2021 volatility for these stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There is an OPEC meeting scheduled for Tuesday morning. After the market opens, we'll get the ISM Manufacturing data. We'll also get the JOLTs Job Openings reports which have been influential to sentiment over the past year. After the market closes, API Weekly Crude Oil Stock will be available. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance If the index returns to the trend line from the 12/20 low, that would mean a +1.37% gain for tomorrow. The one-day trend line points to a +0.61% advance. Following the five-day trend line would result in a -0.64%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Looking across all inputs, it appears to be a constructive start to the new year. Volume is much higher than last week's holiday volume but has not yet returned to the fifty-day average volume. The advance/decline ratios were good, and growth sectors all had gains. However, several stocks that have enjoyed rich valuations, such as DataDog and MongoDb, dropped today, showing investors have limits heading into the new year. For tomorrow, the expectation is higher. Stay healthy and trade safe!

Daily Market Update for 12/23 Summary: Even amongst mixed economic data, markets continued to rally as more information emerges about Omicron. Optimism continues to build that the global economy can power thru further pandemic waves. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, December 23, 2021 Facts: +0.85%, Volume lower, Closing Range: 74%, Body: 64% Green Good: Rise above 15,600 support area, closing range of 74% Bad: Lower volume, some minor selling before close Highs/Lows: Higher high, Higher low Candle: Mostly green body with a slightly longer upper wick Advance/Decline: 2.24, more than two advancing stocks for every declining stock Indexes: SPX (+0.62%), DJI (+0.55%), RUT (+0.89%), VIX (-3.60%) Sector List: Consumer Discretionary (XLY +1.39%) and Industrials (XLI +1.18%) at the top. Utilities (XLU -0.01%) and Real Estate (XLRE -0.30%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Even amongst mixed economic data, markets continued to rally as more information emerges about Omicron. Optimism continues to build that the global economy can power thru further pandemic waves. The Nasdaq climbed another +0.85%. The closing range of 74% comes above a 64% green body. The slightly longer upper wick formed just before close as investors closed positions before a long holiday weekend and expected lower volume over the next few weeks. There were more than two advancing stocks for every declining stock. Small-caps continue to lead this week with the Russell 2000 (RUT) gaining +0.89% today. The S&P 500 (SPX) rose +0.62% and the Dow Jones Industrial Average (DJI) advanced +0.55%. The VIX Volatility Index fell to its lowest point since rising in late November, declining -3.60% today. Consumer Discretionary (XLY +1.39%) and Industrials (XLI +1.18%) were the top two sectors. Utilities (XLU -0.01%) and Real Estate (XLRE -0.30%) were at the bottom of the list. Economic data was mixed. Durable Goods Orders for November was higher than expected. However, PCE Price Index data for November was also higher than expected as high inflation continues. Personal Spending was lower than the previous month, but matched the forecast. Weekly Initial Jobless Claims stayed steady at 205,000. The US Dollar Index (DXY) declined -0.06%. US 30y, 10y, and 2y Treasury Yields all rose for the day. High Yield (HYG) Corporate Bond prices rose while Investment Grade (LQD) Corporate Bond prices dropped. The put/call ratio (PCCE) declined to 0.642. The CNN Fear & Greed Index moved back toward Neutral, but remains in the Fear range. The NAAIM Money Manager Exposure Index rose to 67.02 from 52.22 the week before. All four largest mega-caps had gains. Microsoft (MSFT), Apple (APPL), and Alphabet (GOOGL) gained +0.45%, +0.36% and +0.34%, respectively. Amazon (AMZN) rose just +0.02% and still closed below its 21d EMA and 50d MA. Tesla (TSLA) topped the mega-cap list for a second day, gaining +5.76% today. Pfizer (PFE) was at the bottom of the list with a -1.41% decline. Chewy (CHWY) recovered most of its post-earnings decline with a +6.28% advance today, bringing it to the top of the Daily Update Growth List. JD.com (JD) was at the bottom of the list, losing -6.92%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Markets are closed on Friday due to the Christmas Holiday. There are no significant economic events or earnings reports on Monday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq rose above the 15,600 support area today. If the one-day and five-day trend lines continue into Monday, that would mean another +0.84% advance. The trend line from the 11/22 high points to a -2.98% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Three days of green in the markets was a nice present leading into the Christmas holiday. Volume was shrinking however and one can expect volume to continue to be low for the next two weeks. That could give more influence to the bulls or bears, but typically the last week and first week of the year are bullish. The expectation for Monday is Sideways or Higher. Stay healthy and trade safe!

Daily Market Update for 12/22 Summary: Markets moved higher on positive Consumer Confidence data as Omicron fears start to fall. Gains were shared widely across the market with all S&P 500 sectors gaining for the day. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, December 22, 2021 Facts: +1.18%, Volume lower, Closing Range: 98%, Body: 91% Green Good: Higher high, higher low, great closing range Bad: Lower volume Highs/Lows: Higher high, Higher low Candle: Mostly green body, tiny upper and lower wicks Advance/Decline: 1.49, three advancing for every two declining stocks Indexes: SPX (+1.02%), DJI (+0.74%), RUT (+0.86%), VIX (-11.33%) Sector List: Consumer Discretionary (XLY +1.82%) and Technology (XLK +1.31%) at the top. Industrials (XLI +0.28%) and Communications (XLC +0.25%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets moved higher on positive Consumer Confidence data as Omicron fears start to fall. Gains were shared widely across the market with all S&P 500 sectors gaining for the day. The Nasdaq rose +1.18% today. Volume was lower than the previous day but the 98% closing range and high advance/decline ratio were very bullish. The candle is covered by a 91% green body with tiny upper and lower wicks. There were three advancing stocks for every two declining stocks. The S&P 500 (SPX) gained +1.02%. The Dow Jones Industrial Average (DJI) rose +0.74%. The Russell 2000 (RUT) advanced +0.86%. The VIX Volatility Index declined -11.33%. Consumer Discretionary (XLY +1.82%) and Technology (XLK +1.31%) were the top sectors for the day. Industrials (XLI +0.28%) and Communications (XLC +0.25%) were at the bottom of the list. Quarterly GDP growth for Q3 updated to 2.3% compared to the previous 2.1% reading. CB Consumer Confidence came in at 115.8 compared to the expectation of 110.8. Crude Oil Inventories showed higher demand than expected, showing a shortage of -4.715 million barrels compared to a-2.750 million barrel expected shortage. The US Dollar weakened with the index (DXY) dropping -0.37%. US 30y, 10y, and 2y Treasury Yields all declined slightly. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices advanced. Aluminum Futures were up sharply for a second day. All four largest mega-caps gained for the day with three of the four closing above their 21d EMA and 50d MA. Alphabet (GOOGL) gained the most, rising +2.05%. Microsoft (MSFT) advanced +1.81%. Apple (AAPL) climbed +1.53%. Amazon (AMZN) rose +0.36%, the only one that remains below the key moving average lines. Tesla (TSLA) was the top mega-cap of the day, gaining +7.49% today after Elon Musk finished selling stock for taxes. Alibaba (BABA) declined -4.20%, dropping to the bottom of the mega-cap list. Tesla was also the top stock in the Daily Update Growth List. In a distant second was Digital Turbine (APPS), which gained +2.66%. At the bottom of the list was FUTU Holdings (FUTU), declining -6.01%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Durable Goods Orders data for November will be available in the morning. We'll also get PCE Price Index data and the weekly Initial Jobless Claims. After the market opens, expect the Michigan Consumer Confidence and Expectations as well as New Home Sales. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq moved back above the 50d moving average and the 21d exponential moving average lines. It closed below the 15,600 support/resistance area. If the one-day trend line continues, expect a +0.37% advance for Thursday. The five-day trend line points to a -1.25% decline. If the index drops back to the trend line from the 11/22 high, that would mean a -2.57% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Sentiment is improving as more data emerges about the severity of Omicron. It helped that Biden didn't mention new lockdowns or travel restrictions in his address to the nation on Tuesday. Top that off with positive economic data and it was a good setup for gains today. The expectation for tomorrow is Sideways or Higher. Stay healthy and trade safe!

Daily Market Update for 12/21 Summary: A rebound from the Omicron sell-off was helped along by great earnings reports from Nike and Micron Technology. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, December 21, 2021 Facts: +2.40%, Volume lower, Closing Range: 98%, Body: 60% Green Good: Broad gain with high advance/decline ratio, high closing range Bad: Lower volume Highs/Lows: Higher high, Higher low Candle: Large green body at top of candle, long lower wick Advance/Decline: 2.9, almost three advancing stocks for every declining stock Indexes: SPX (+1.78%), DJI (+1.60%), RUT (+2.95%), VIX (-8.13%) Sector List: Energy (XLE +2.85%) and Consumer Discretionary (XLY +2.59%) at the top. Consumer Staples (XLP -0.13%) and Utilities (XLU -0.14%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview A rebound from the Omicron sell-off was helped along by great earnings reports from Nike and Micron Technology. The Nasdaq climbed by +2.40%. Volume was lower than the previous day and below the 50-day average. The candle has a 60% green body above a long lower wick. The closing range of 98% shows a bullish day all the way into the close. There were nearly 3 advancing stocks for every declining stock. Small-caps outperformed, sending the Russell 2000 (RUT) up by +2.95%. The S&P 500 (SPX) gained +1.78% and the Dow Jones Industrial Average (DJI) climbed by +1.60%. The VIX Volatility index declined -8.13%. Energy (XLE +2.85%) and Consumer Discretionary (XLY +2.59%) led the sector list. The only two sectors to decline were Consumer Staples (XLP -0.13%) and Utilities (XLU -0.14%). The US Dollar index (DXY) declined -0.17%. US 30y, 10y, and 2y Treasury Yields all advanced for the day. High Yield (HYG) and Investment Grade (LQD) Corporate Bond Prices rose. Crude Oil Prices rebounded from yesterday's dip. Timber, Copper, and Aluminum all advanced. The put/call ratio (PCCE) dropped to 0.621. The CNN Fear & Greed Index moved back to the Fear range after dipping into Extreme Fear yesterday. All four largest mega-caps gained for the day. Microsoft (MSFT) gained +2.31%. Amazon (AMZN) rose by +2.00%. Apple (APPL) climbed +1.91%. Alphabet (GOOGL) advanced +1.32%. Only Apple is trading above its 21d EMA and 50d MA. Alibaba (BABA) topped the mega-cap list with a +6.94% gain. Nike (NKE) also climbed over 6% after exceeding expectations on earnings. Pfizer (PFE) declined -3.39% landing at the bottom of the list. Yesterday, Pfizer was the top mega-cap while Alibaba (BABA) was the bottom. The Daily Update Growth List had only two declining stocks. The biggest gainer was Sea Limited (SE), which rose +10.82%. After topping the list yesterday, Chewy (CHWY) was at the bottom of the list today, declining -2.30%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Tomorrow will kick off with an update to GDP for Q3 before the market opens. After the market opens, CB Consumer Confidence for December will be available. We'll also get a look at Existing Home Sales for November and the weekly Crude Oil Inventories. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dipped after a gap-up at open, getting support at 15,000 before climbing the rest of the day to close near the intraday high. If the one-day trend line continues into Wednesday, expect a +2.32% gain. If the index returns to the high from the 11/22 high or the five-day trend line, that would mean a -1.76% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Fears over Omicron seem to be as volatile as the market. The upside reversal today is a positive sign, but don't get too comfortable too quick. We can still see a lot of up and downs, especially with the lower volume that will only get lower as we head into the final week of December. Based on the chart, the expectation for tomorrow is Sideways or Higher. Stay healthy and trade safe!

Daily Market Update for 12/20 Summary: After new lockdowns to contain Omicron in Europe and a disruption for the Build Back Better bill, indexes took another day of losses. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, December 20, 2021 Facts: -1.24%, Volume lower, Closing Range: 82%, Body: 33% Green Good: Lower volume on decline Bad: Lower high, lower low, load advance/decline Highs/Lows: Lower high, Lower low Candle: Short body in upper half of candle, longer lower wick Advance/Decline: 0.29, more than three declining stocks for every advancing stock Indexes: SPX (-1.14%), DJI (-1.23%), RUT (-1.57%), VIX (+6.03%) Sector List: Consumer Staples (XLP -0.65%) and Utilities (XLU -0.69%) at the top. Financials (XLF -2.41%) and Energy (XLE -2.50%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview After new lockdowns to contain Omicron in Europe and a disruption for the Build Back Better bill, indexes took another day of losses. The Nasdaq declined -1.24%. Volume was lower Friday and lower than the recent average volume. The candle is 33% green body in the upper half of the candle which has an 82% closing range. The lower wick Is longer than the upper wick. There were more than three declining stocks for every advancing stock. The S&P 500 (SPX) closed with a -1.14% decline. The Dow Jones industrial Average (DJI) fell -1.23%. Russell 2000 (RUT) dropped -1.57%. The VIX Volatility index ended the day with a +6.02% gain. All eleven S&P 500 sectors declined for the day. The defensive sectors, Consumer Staples (XLP -0.65%) and Utilities (XLU -0.69%) performed the best. Cyclical sectors Financials (XLF -2.41%) and Energy (XLE -2.50%) were at the bottom. The US Dollar index (DXY) declined by -0.17%. The US 30y and 10y Treasury Yields rose while the 2y yield declined. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined. Crude Oil Futures dropped after new travel restrictions. Timber (WOOD) dropped sharply today. The put/call ratio (PCCE) declined to 0.673. The lower ratio says investors are betting that this is a bottom, but that doesn't mean they are right. We find that out later. The CNN Fear & Greed index moved back into Extreme Greed. All four largest mega-caps declined. Apple (AAPL) declined -0.81% but closed above its 21d EMA. Microsoft (MSFT) fell -1.20%, closing below its 21d EMA and 50d MA. Alphabet (GOOGL) also closed between the two key averages. Amazon (AMZN) dropped below its 200d MA with a -1.73% decline. Pfizer (PFE) was the top mega-cap for the day, rising +2.59%. Alibaba (BABA) landed at the bottom of the mega-cap list after losing -5.81%. Only five stocks in the Daily Update Growth List gained. Chewy (CHWY) topped the list with a +3.21% advance. Solar Edge (SEDG) was at the bottom of the list, losing -10.56%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead General Mills (GIS), BlackBerry (BB), and Rite Aid (RAD) release earnings tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dropped below 15,000 area during the day and then met resistance trying to rise back above that line. If the index returns to the trend line from the 11/22 high, that would mean a +0.83% advance for tomorrow. The five-day trend line and one-day trend line both point to a small +0.04% gain. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It's tough to tell how much of today was because of Omicron fears and how much of today was because of Manchin declaring he won't support the Build Back Better bill. Either way, these events continue to cause a lot of volatility in a skittish market. The expectation for Tuesday is lower. Stay healthy and trade safe!

Daily Market Update for 12/17 Summary: Small-caps outperformed the rest of the market today as investors repositioned for the holidays. The reposition and options expiration drove larger than average volume. All S&P 500 sectors declined. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, December 17, 2021 Facts: -0.07%, Volume higher, Closing Range: 64%, Body: 40% Green Good: Support at ~15,000, high closing range Bad: Volume higher on a decline Highs/Lows: Lower high, Lower low Candle: Green body, upper wick slightly longer than lower wick Advance/Decline: 1.23, more advancing stocks than declining stocks Indexes: SPX (-1.03%), DJI (-1.48%), RUT (+1.00%), VIX (+4.86%) Sector List: Real Estate (XLRE -0.34%) and Communications (XLC -0.40%) at the top. Energy (XLE -2.04%) and Financials (XLF -2.20%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Small-caps outperformed the rest of the market today as investors repositioned for the holidays. The reposition and options expiration drove larger than average volume. All S&P 500 sectors declined. The Nasdaq closed down by -0.07%, unable to hold onto an intraday rally. Volume was well above yesterday's volume and the 50d average volume for the Nasdaq. The 40% green body is below a good closing range of 64%. The upper wick is longer than the lower wick, representing the pullback from the intraday high. Still, there were more advancing stocks than declining stocks for the day. The Russell 2000 (RUT) was the only index to gain for the day, advancing +1.00%. The S&P 500 (SPX) declined -1.03%, while the Dow Jones Industrial Average (DJI) fell -1.48%. The VIX Volatility Index gained +4.86%. All S&P 500 sectors declined today. Real Estate (XLRE -0.34%) and Communications (XLC -0.40%) had the smallest losses. Energy (XLE -2.04%) and Financials (XLF -2.20%) had the most significant losses. The US Dollar Index (DXY) climbed by +0.70%. US 30y and 10y Treasury Yields declined for the day while the 2y Yield rose. High Yield (HYG) Corporate Bond prices dropped. Investment Grade (LQD) Corporate Bond prices advanced. Aluminum and Copper futures rose sharply over the last two days. The put/call ratio (PCCE) rose to 0.782. The CNN Fear & Greed index moved back toward Extreme Fear but is still in the Fear range. The NAAIM money manager exposure index dropped to 52.55. Amazon (AMZN) was the only one to advance of the four largest mega-caps, gaining +0.68%. Microsoft dipped -0.34%, closing below its 50d moving average. Google (GOOGL) also closed below its 50d moving average, dropping -1.88% today. Apple (AAPL) declined -0.65%, the only of the four to remain above its 21d EMA and 50d MA. Broadcom (AVGO) was the top mega-cap for the day, gaining +2.30%. Novo Nordisk (NVO) declined -8.23% to end up at the bottom of the list. Oracle (ORCL) also had a significant decline, falling -6.39% today after rumors the company would acquire Cerner (CERN). Cerner rose almost 13% on the news. Zoom (ZM) rose to the top of the Daily Update Growth List, gaining +9.51% on news that Apple and Alphabet are delaying their return to office plans because of the Omicron variant. The growth list had more gainers than losers. At the bottom of the list was Niu (NIU), which declined -3.82%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Nike (NKE) will release earnings on Monday, one of the few large-cap reports next week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq opened with a gap down but rose through the day to close the gap, closing just below the 15,200 support/resistance area. If the index can follow its one-day trend line, that would mean a +1.32% gain for Monday. The trend line from the 11/22 high leads to a +0.15% gain. The five-day trend line would result in a -0.42% decline to start the week. Next week is a four-day week, with the markets closing on Friday for the Christmas holiday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It's a bit odd to see the advance/decline ratio above 1.0 on a day when all sectors declined. It's just more evidence that small caps ruled the day as investors moved from big tech in the continuing reaction to planned interest rate hikes in 2022. Will the small-cap trend continue? It might. The end of the year into January of the following year tends to be good for the small-cap segment. I like the intraday move higher on very high volume for the Nasdaq even though the index closed lower. The expectation for Monday is Sideways or Higher. Stay healthy and trade safe!

Daily Market Update for 12/16 Summary: Investors seemed to rethink their positioning after the Fed updated the public on bond tapering and interest rates. Growth stocks and big tech saw the biggest losses, while cyclical sectors benefited. Some new fears of lockdowns around Omicron may also have contributed to the sell-off. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, December 16, 2021 Facts: -2.47%, Volume lower, Closing Range: 12%, Body: 87% Red Good: Volume lower, higher high, higher low Bad: Deep red day, close below 21d EMA, 50d MA, and 15,200 support Highs/Lows: Higher high, Higher low Candle: Mostly red body with short lower wick Advance/Decline: 0.55, almost two declining stocks for every advancing stock Indexes: SPX (-0.87%), DJI (-0.08%), RUT (-1.95%), VIX (+6.64%) Sector List: Financials (XLF +1.26%) and Materials (XLB +1.02%) at the top. Consumer Discretionary (XLY -2.21%) and Technology (XLK -2.83%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Investors seemed to rethink their positioning after the Fed updated the public on bond tapering and interest rates. Growth stocks and big tech saw the biggest losses, while cyclical sectors benefited. Some new fears of lockdowns around Omicron may also have contributed to the sell-off. This update is much shorter than normal due to travel this week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The index dropped below the trend line from the 10/22 high. If it returns to that trend line, expect a +0.38% gain. The five-day trend line points to a -0.65% decline. If the one-day trend line continues, we could see another -2.91% decline tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Expect volatility to end the week as investors react to central bank updates around the world. We thought the Santa Rally was starting early, but it seems we'll have to endure a few days of institutional repositioning before the holidays. Expecting Lower for Friday. Stay healthy and trade safe!

Daily Market Update for 12/15 Summary: Markets pivoted to the upside after Jerome Powell's statements confirmed that the Fed changed its stance on inflation. Bond purchase tapering will complete in March, and we can expect three quarter-point interest rate hikes in 2022. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, December 15, 2021 Facts: +2.15%, Volume lower, Closing Range: 98%, Body: 64% Green Good: Higher close above 21d EMA on higher volume, good advance/decline ratio Bad: Lower low Highs/Lows: Higher high, Lower low Candle: Bullish outside day, Large green body above a long lower wick Advance/Decline: 1.75, more advancing than declining stocks Indexes: SPX (+1.63%), DJI (+1.08%), RUT (+1.65%), VIX (-11.88%) Sector List: Technology (XLK +2.65%) and Health (XLV +2.05%) at the top. Materials (XLB +0.22%) and Energy (XLE -0.49%) at the bottom. Expectation: Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets pivoted to the upside after Jerome Powell's statements confirmed that the Fed changed its stance on inflation. Bond purchase tapering will complete in March, and we can expect three quarter-point interest rate hikes in 2022. The Nasdaq closed the day with a +2.15%. The index dipped in the morning but reversed after the FOMC released its statements. That created a bullish outside day marked by the higher high and higher low. The green body covers 64% of the candle. The closing range of 98% leaves only a tiny wick compared to the long lower wick formed in the morning. There were more than three advancing stocks for every two declining stocks. The Russell 2000 (RUT) dipped to its 2021 support area before reversing to end the day +1.65% higher. The S&P 500 (SPX) gained +1.63%, closing just short of a record. The Dow Jones Industrial Average (DJI) climbed by +1.08%. The VIX Volatility Index (VIX) fell -11.88%. Ten of the eleven S&P 500 sectors gained for the day. Technology (XLK +2.65%) and Health (XLV +2.05%) were at the top of the list. Energy (XLE -0.49%) was the only sector to decline. Retail Sales for November were less than expected, growing only 0.3% month-over-month compared to 0.8% expected. The left Business Inventories and Retail Inventories higher than expected. The NY Empire State Manufacturing Index for December came in at 31.90 compared to a forecast of 25.0. The projection for interest rates by the end of 2022 is 0.90, which would come via three interest rate hikes to begin after bond purchase tapering completes in March. The US Dollar Index (DXY) declined -0.24%. US 30y, 10y, and 2y Treasury Yields all rose. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices increased. All four largest mega-caps gained. Apple (AAPL) rose +2.85%, nearing another record close. Microsoft (MSFT) and Alphabet (GOOGL) popped above their 21d EMA with +1.92% and +1.76% gains. Amazon (AMZN) closed above its 50d MA with a +2.50% advance. Eli Lilly (LLY) was the top mega-cap for the day, gaining +10.39% after the company updated investors, including plans for new products in the next year. Nvidia (NVDA) was the second-best mega-cap, gaining +7.49%. Alibaba (BABA) was at the bottom of the mega-cap list with a -3.25% decline. The Daily Update Growth List had mostly gainers today. Tech companies dominate the top of the list. Zscaler (ZS) was the top performer with a +8.05% climb. At the bottom of the list is Roku (ROKU), which declined -7.95%. Morgan Stanley maintained an underweight rating for the stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Tomorrow morning will start with Building Permits, and Housing Starts data for November. We will also get the weekly Jobless Claims report and the December Philadelphia Fed Manufacturing Index. Later in the morning, Manufacturing and Services Purchasing Managers Index data will be available. Adobe (ADBE), Accenture (ACN), Rivian (RIVN), FedEx (FDX), and Jabil (JBL) will release earnings tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq closed above its 21d EMA and below support/resistance at 15,600. If the one-day trend line continues into Thursday, that will mean a +1.41% gain. If the index returns to the trend line from the 11/22 high, that would be a loss of -1.96%. The five-day trend line points to a -3.54% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Can the Santa Claus Rally begin now? Now that the Fed's outlook and plan are on the table, there are fewer unknowns for the remainder of the year. Today's bullish reaction to the Fed's statements provides an optimistic outlook for the next few weeks. The expectation for Thursday is Higher. Stay healthy and trade safe!

Daily Market Update for 12/14 Summary: Indexes moved lower for a second day as investors await the result of the Fed meeting on Wednesday. The Producer Price Index recorded its biggest increase since 2010, signaling more inflation on the horizon. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, December 14, 2021 Facts: -1.14%, Volume lower, Closing Range: 64%, Body: 10% Green Good: Support at 15,100 Bad: Close below 50d moving average, decline on higher volume Highs/Lows: Lower high, Lower low Candle: Thin green body in center of candle with long wicks, signals indecision Advance/Decline: 0.4, 5 declining stocks for every two advancing stocks Indexes: SPX (-0.75%), DJI (-0.30%), RUT (-0.96%), VIX (+7.78%) Sector List: Financials (XLF +0.60%) and Consumer Staples (XLP +0.07%) at the top. Real Estate (XLRE -1.10%) and Technology (XLK -1.64%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Indexes moved lower for a second day as investors await the result of the Fed meeting on Wednesday. The Producer Price Index recorded its biggest increase since 2010, signaling more inflation on the horizon. The Nasdaq declined -1.14%, gapping down at open and closing below its 50d moving average line. After dipping below the 15,200 support area, buyers returned when the index neared 15,100. It climbed into the afternoon to close near the morning open. The up and down created a spinning top candle that signals indecision in the market. There were five declining stocks for every two advancing stocks. The Dow Jones Industrial Average (DJI) declined -0.30%. The S&P 500 (SPX) fell -0.75%. The Russell 2000 (RUT) dropped -0.96% and is now sitting just above the support area that the small-cap index held since February. The VIX Volatility index rose +7.78%. Only two of the eleven S&P 500 sectors gained for the day. Financials (XLF +0.60%) and Consumer Staples (XLP +0.07%) were at the top of the list. Real Estate (XLRE -1.10%) and Technology (XLK -1.64%) performed the worst. The Producer Price Index rose 0.8% month-over-month and 9.6% year-over-year. That was higher than the 0.5% monthly, and 9.2% yearly increases that analysts expected. The producer price index signals future inflation as producers will pass increased costs to consumers. The US Dollar index (DXY) gained +0.20%. US 30y, 10y, and 2y yields gained for the day. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined. In commodities, Timber prices dropped sharply. All four largest mega-caps declined today. Microsoft (MSFT) had the most significant loss, falling -3.26% and closing below its 21d EMA after testing the 50d MA. Alphabet (GOOGL) declined -1.32%, closing below its 50d MA. Apple (AAPL) lost -0.80% but is still near all-time highs. Amazon (AMZN) dipped below its 200d MA before recovering and ending the day with a -0.28% decline. Alibaba (BABA) was the top-performing mega-cap for the day, advancing +3.55%. Adobe (ADBE) was at the bottom of the mega-cap list, losing -6.60% after a JPMorgan Chase analyst downgraded the stock. Beyond Meat (BYND) rose +9.29% today after an analyst upgraded it from underweight to neutral on news that their relationship with McDonald's is expanding. The stock topped the Daily Update Growth List. At the bottom of the list was CloudFlare (NET), falling -9.98% today. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Retail Sales data for November will be available in the morning. Crude Oil Inventories will be updated after the market opens. The most important news will come after the FOMC meets and releases a statement at 2 pm that includes their economic projections and interest rate decision/projection. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq continued its slide today, closing below the 50d moving average. If the index returns to the trend line from the 11/22 high, that would mean a +0.50% gain for tomorrow. The one-day trend line points to a -0.33% decline, while the five-day trend line ends with a -0.90% loss. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up So we wait. We wait for the Fed to decide on Wednesday about the pace of Bond Purchase Tapering and Interest Rate Increases to control a crazy amount of inflation. With such a pivotal event, the trends in the chart don't matter as much. Still, I'll set an expectation for Sideways or Lower based on the current downtrend and lack of support in critical areas, including the 50d moving average. If the Fed is less hawkish than expected, we could see a nice upside reversal tomorrow. Stay healthy and trade safe!

Daily Market Update for 12/13 Summary: Fears over Omicron renewed caution as investors also anticipate the Fed meeting occurring this week. Defensive sectors gained for the day while all major indexes declined. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, December 13, 2021 Facts: -1.39%, Volume higher, Closing Range: 2%, Body: 91% Red Good: Close above the 50d MA and 15,400 support area Bad: Decline on higher volume, low closing range, tiny wicks around a red body Highs/Lows: Lower high, Lower low Candle: Mostly red body, tiny upper and lower wicks Advance/Decline: 0.41, more than two declining stocks for every advancing stock Indexes: SPX (-0.91%), DJI (-0.89%), RUT (-1.42%), VIX (+8.67%) Sector List: Real Estate (XLRE +1.34%) and Consumer Staples (XLP +1.31%) at the top. Consumer Discretionary (XLY -2.58%) and Energy (XLE -2.78%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Fears over Omicron renewed caution as investors also anticipate the Fed meeting occurring this week. Defensive sectors gained for the day while all major indexes declined. The Nasdaq fell -1.39%. The decline came with higher volume than the previous day, marking another distribution. The index sank below its 21d exponential moving average but closed above its 50d simple moving average. It also closed above the 15,400 support area. The closing range was 2%, underneath a 91% red body. There were more than two declining stocks for every advancing stock. The S&P 500 (SPX) and Dow Jones Industrials Average (DJI) had similar declines, falling -0.91% and -0.89%. The Russell 2000 (RUT) dropped - 1.42%. The VIX Volatility Index rose +8.61%. Only the four defensive sectors ended the day with gains. Real Estate (XLRE +1.34%) and Consumer Staples (XLP +1.31%) were the top performers. Consumer Discretionary (XLY -2.58%) and Energy (XLE -2.78%) had the most significant declines. The US Dollar index (DXY) gained +0.33%. US 30y, 10y, and 2y Treasury Yields retreated again on new Omicron fears. High Yield (HYG) Corporate Bond prices remained flat while Investment Grade (LQD) Corporate Bond prices advanced. Silver and gold prices gained for the day. The put/call ratio (PCCE) declined to 0.689. The CNN Fear & Greed Index moved back toward Extreme Fear but remained in the Fear range. All four largest mega-caps declined. Amazon (AMZN) closed below its 50d MA, declining -1.54% today. The other three are still above the 50d MA and the 21d EMA. Apple (AAPL) declined -2.07%. Alphabet (GOOGL) lost -1.47%. Microsoft (MSFT) fell -0.92%. Pfizer (PFE) was the top mega-cap, gaining +4.59% today after announcing they will acquire Arena Pharmaceuticals (ARNA). Arena gained +80% on the news. Nvidia (NVDA) had the most significant decline in the mega-cap list, losing -6.74% today. Peloton (PTON) gained +7.35%, topping the Daily Update Growth List. Peloton shot back at the HBO show "And Just Like That" with a digital advertisement to respond to the storyline. I won't include any spoilers here, but it's Big! The growth list is mostly losers for today. Ehang (EH) joined Nvidia at the bottom of the list with a -5.97% decline. Other Chinese stocks, including FUTU Holding (FUTU) and UP Fintech (TIGR), also declined by more than 5%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Producer Price Index data for November will be available in the morning. API Weekly Crude Oil Stock will be available after the market closes. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dipped below the 21d EMA again, finding support at 15,400 and closing above its 50d MA. The five-day trend line points to a +0.19% gain for tomorrow. The trend line from the 11/22 high points to a -0.10% decline. If the one-day trend line continues, expect a -0.54% decline for Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Well, we thought Omicron fears had subsided, but news from the UK over the weekend rose the alarm again. Additionally, investors are nervous about what will come out of the Fed meeting on Wednesday, which will include projections on Interest Rate hikes for 2022-2023. Based on the chart, the expectation for tomorrow is Lower. Stay healthy and trade safe!

Daily Market Update for 12/10 Summary: Consumer Price Index data was about what analysts expected, avoiding any big surprises in the morning. Now investors await the Fed meeting next week to determine how officials will respond to soaring inflation. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, December 10, 2021 Facts: +0.73%, Volume lower, Closing Range: 76%, Body: 1% Green Good: Higher close, above 21d EMA Bad: Lower high, lower low Highs/Lows: Lower high, Lower low Candle: Thin body in upper part of candle, long lower wick Advance/Decline: 0.47, two declining stocks for every advancing stock Indexes: SPX (+0.95%), DJI (+0.60%), RUT (-0.38%), VIX (-13.39%) Sector List: Technology (XLK +2.01%) and Consumer Staples (XLP +1.69%) at the top. Financials (XLF +0.10%) and Communications (XLC +0.05%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Consumer Price Index data was about what analysts expected, avoiding any big surprises in the morning. Now investors await the Fed meeting next week to determine how officials will respond to soaring inflation. The Nasdaq closed with a +0.73% gain. Volume was lower than the previous day. The candle has a green body covering only 1% of the range, while a long lower wick extended beyond yesterday's low. The lower low is joined by a lower high, continuing a three-day downtrend. The closing range was good at 76% but there were two declining stocks for every advancing stock. The S&P 500 (SPX) rose +0.95% to achieve a record closing price. The Dow Jones Industrial Average (DJI) climbed by +0.60%. Small caps didn't do well, with the Russell 2000 (RUT) declining -0.38%. The VIX Volatility index came down -13.39%. All eleven S&P 500 sectors gained. Technology (XLK +2.01%) and Consumer Staples (XLP +1.69%) were the top sectors. Technology was helped to the top by investors glad to not see surprises in the Consumer Price Index data. Consumer Staples was boosted by the continued high inflation represented by the data. Financials (XLF +0.10%) and Communications (XLC +0.05%) were at the bottom of the sector list. The Consumer Price Index data came in as expected, with Core CPI at 0.5% month-over-month and 4.9% year-over-year. Total CPI (which includes food and energy) was slightly higher at 0.8% month-over-month instead of the expected 0.7%. Michigan Consumer Expectations for December registered at 67.8 against the expectation of 62.0. Consumer Sentiment was at 70.4, better than the expected 67.1. The US Dollar index (DXY) declined -0.67%. The 30y Treasury yield ended the day higher while the 10y and 2y yields dropped. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices rose. The put/call ratio (PCCE) rose to 0.760. The CNN Fear & Greed index moved toward neutral but remained in the Fear range. The NAAIM Money Manager Exposure Index is 69.46 after being above 100 for five weeks. Of the four largest mega-caps, only Amazon (AMZN) declined for the day, losing -1.12% but recovering from a dip below the 50d moving average line to close above the line. Apple (AAPL) soared to another record close, gaining +2.80% for the day. Microsoft (MSFT) had a similar gain, advancing +2.83%. Alphabet (GOOGL) gained +0.25%. After beating earnings expectations, Oracle (ORCL) topped the mega-cap list with a +15.61% gain. PayPal (PYPL) was at the bottom of the list with a -1.69% decline. Whereas the mega-cap list had more gainers than losers, most of the Daily Update Growth List were losers. SnowFlake (SNOW) topped the list with a +2.75% gain. The biggest loser was RobinHood (HOOD) which declined -8.12%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The OPEC Monthly Report is planned for Monday morning. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq closed above the 21d EMA after dipping to a lower low for the day. If the index returns to the five-day trend line for Monday, that would mean a +1.17% gain. The one-day trend line leads to a -0.10% decline. If the index goes the other way and returns to the trend line from the 11/22 high, expected a -1.49% decline on Monday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Although the Consumer Price Index data came in near expectations, it still shows inflation at its highest point since the 1980s. All eyes are now on the Fed to see what monetary policy changes they make in next week's meeting. Analysts expect faster bond purchase tapering completed by March and quicker interest rate hikes in 2022. The expectation for Monday is Sideways. Stay healthy and trade safe!

Daily Market Update for 12/9 Summary: Now that Omicron fears seem behind us, investors' focus turned to inflation and how the Fed might react if Consumer Price Index data is higher than expected. That caused investors to move into defensive positions on Thursday ahead of the CPI report due on Friday. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, December 9, 2021 Facts: -1.71%, Volume lower, Closing Range: 2%, Body: 71% Red Good: Lower volume on decline Bad: Low closing range, close below 21d EMA Highs/Lows: Higher high, Lower low Candle: Thick red body with no lower wick, long upper wick Advance/Decline: 0.35, three declining stocks for every advancing stock Indexes: SPX (-0.72%), DJI (-0.00%), RUT (-2.27%), VIX (+8.44%) Sector List: Consumer Staples (XLP +0.27%) and Health (XLV +0.23%) at the top. Real Estate (XLRE -1.27%) and Consumer Discretionary (XLY -1.73%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Now that Omicron fears seem behind us, investors' focus turned to inflation and how the Fed might react if Consumer Price Index data is higher than expected. That caused investors to move into defensive positions on Thursday ahead of the CPI report due on Friday. The Nasdaq declined -1.71% on lower volume than the previous day. The closing range was 2% underneath a 71% red body formed from sellers controlling the entire day. There were three declining stocks for every advancing stock, a reversal from several days of a high advance/decline ratio. The Russell 2000 (RUT) took the most significant loss, declining -2.27%. The S&P 500 (SPX) fell -0.72%. The Dow Jones Industrial Average closed flat for the day, avoiding losses thanks to large health, consumer staples, and recovery stocks. The VIX Volatility Index rose +8.44%. Consumer Staples (XLP +0.27%) and Health (XLV +0.23%) were the only two of the eleven S&P 500 sectors to gain for the day. Real Estate (XLRE -1.27%) and Consumer Discretionary (XLY -1.73%) had the biggest losses. The weekly Initial Jobless Claims data came in better than expected. There were only 184,000 new claims compared to a forecast of 215,000 and last week's 227,000. The US Dollar index (DXY) rose +0.26%. US 30y and 10y Treasury Yields receded slightly while the 2y yield moved higher. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices declined. Silver and Gold prices both fell as the US Dollar strengthened. The put/call ratio declined to 0.689. The CNN Fear & Greed index remains at the Fear level. The NAAIM Money Manager Exposure Index dove to 69.46 after being above 100 for five weeks. All four largest mega-caps declined for the day. Amazon (AMZN) was the only one to dip back below its 21d EMA, losing -1.13% today. Microsoft (MSFT) declined -0.56% but got support at its 21d EMA. Alphabet (GOOGL) fell -0.37%. Apple (AAPL) set another all-time high before ending the day with a -0.30% decline. Abbvie (ABBV) and Pfizer (PFE) were the top mega-caps for the day, gaining +1.87% and +1.32%, respectively. Tesla (TSLA) declined -6.10%, falling to the bottom of the mega-cap list but getting support at its 50d moving average. Only three stocks in the Daily Update Growth List gained for the day. RH (RH) led the way with a +5.47% gain after surprising investors with its earnings beat yesterday and providing upgraded guidance. For most of the growth list, the losses were steep. Sumo Digital (SUMO) dropped the most with a -12.47% decline, followed by Peloton (PTON), which lost -11.35%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The big news for tomorrow morning will be the November Core Price Index data that measures inflation. The data will drive the outlook for analysts as they anticipate how quickly the Fed will taper bond purchases and when they would start interest rate hikes to control inflation. We will also get the Michigan Consumer Sentiment and Consumer Expectations data for December after the market opens. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq failed to get support at the 15,600 area and closed below its 21d EMA. If the index can return to its 5-day trend line, that would mean a +3.30% gain for Friday. That will take some very good but unlikely news on inflation. If the trend line from the 11/22 high continues, expect another -0.95% decline tomorrow. If the index continues the one-day trend line, that would mean a -1.24% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up There's always something for investors to fear in 2021. Omicron was a nice distraction, and we got a short rally once positive news arrived about the variant's potency against vaccination. However, the conversation about the Fed's changing monetary policy in the face of inflation never ended, and now its front-and-center again. Expect Sideways or Lower tomorrow unless the CPI data comes in better than anticipated. Stay healthy and trade safe!

Daily Market Update for 12/8 Summary: Major indexes marched higher today as confidence grows among investors that Omicron is not as dangerous as initially thought. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, December 8, 2021 Facts: +0.64%, Volume lower, Closing Range: 97%, Body: 55% Green Good: Higher high, higher low and high closing range, good advance/decline ratio Bad: Lower volume Highs/Lows: Higher high, Higher low Candle: Green body at top of candle, long lower wick Advance/Decline: 1.92, almost two advancing for every declining stock Indexes: SPX (+0.31%), DJI (+0.10%), RUT (+0.79%), VIX (-9.09%) Sector List: Health (XLV +0.75%) and Communications (XLC +0.73%) at the top. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Major indexes marched higher today as confidence grows among investors that Omicron is not as dangerous as initially thought. The Nasdaq climbed +0.64% and closed near the intraday high. Volume was lower than the previous day, but almost two stocks advanced for every declining stock. The green body covers 55% of the candle, which has a 97% closing range. A longer lower wick formed at market open, but bulls bought the dip and sent the index higher. The Russell 2000 (RUT) outperformed the other indexes with a +0.79% gain. The S&P 500 (SPX) climbed by +0.31%. The Dow Jones Industrial Average (DJI) only gained +0.10%. The VIX Volatility Index fell another -9.18%. Health (XLV +0.75%) and Communications (XLC +0.73%) let the sector list. Communications led for most of the day, but Health caught up and topped the sector list just before close. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) were at the bottom of the sector list. The JOLTs Job Openings report showed 11.033 million openings for October, more than the expected 10.369 million. The report signals a continued labor shortage as people quit jobs at a record rate while companies are trying to hire for the holiday season. The US Dollar weakened with the index (DXY) dropping -0.35% today. US 30y and 10y Treasury yields continue to climb while the 2y yield fell slightly. High Yield (HYG) Corporate Bond prices fell by only -0.02%. Investment Grade (LQD) Corporate Bond prices fell -0.67%. Crude Oil Futures gained another +5.21% as Omicron fears eased worries about travel demand. The put/call ratio rose to 0.706. The CNN Fear & Greed indicator moved closer to Neutral but remained at the Fear level. All four largest mega-caps stayed positive for the day, although Amazon (AMZN) closed flat. Apple (AAPL) set another record close, gaining +2.28% today. Alphabet (GOOGL) gained +0.62%. Microsoft (MSFT) held onto a +0.01% gain. PayPal (PYPL) was the top mega-cap for the day, gaining +3.31%. At the bottom of the list was Toyota Motor (TM ), which declined -2.65%. Roku (ROKU) topped the daily update growth list with a +18.23% gain. The company announced a multi-year deal with Google to keep YouTube and YouTube TV on its streaming platform. DocuSign (DOCU) was the second-best performer on the list. The stock climbed +10.92% after the CEO bought $4.8 million in stock. Only four stocks in the growth list declined. Lululemon (LULU) dropped -2.06% ahead of earnings. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The weekly Initial Jobless Claims report will be available in the morning. Oracle (ORCL), Broadcom (AVGO), Costco (COST), Lululemon (LULU), and Chewy (CHWY) report earnings on Thursday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq did a steady climb toward the 16,000 resistance area but still has a ways to go. If the one-day and five-day trend lines continue, it will result in a +0.63% advance for Thursday. The trend line from the 11/22 high points to a -3.05% decline. We are still watching for 15,833.11, which is the high of last week. A new weekly high will build confidence that the Omicron correction is behind us. It will also help if volume increases as the index moves higher. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Overall it was a productive day with broad gains across many stocks, but volume is decreasing as the markets move higher. We can have more confidence in the rally if the volume increases, showing more strength in the move. The expectation for Thursday is Sideways or Higher. Stay healthy and trade safe!

Daily Market Update for 12/7 Summary: Investors rushed back into risk assets as more assurances came from experts that Omicron might spread faster but have less severe symptoms. The drugmaker GlaxoSmithKline also reported that their antibody-based COVID-19 therapy is effective against the new variant. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, December 7, 2021 Facts: +3.03%, Volume lower, Closing Range: 92% (w/gap), Body: 83% Green Good: Mostly green body, close above 50d MA, 21d EMA and 15,600 support area. Bad: Gap up on lower volume Highs/Lows: Higher high, Higher low Candle: Gap up and mostly green body, upper wick, no lower wick Advance/Decline: 2.41, more than two advancing stocks for every declining stock Indexes: SPX (+2.07%), DJI (+1.40%), RUT (+2.28%), VIX (-19.46%) Sector List: Technology (XLK +3.49%) and Energy (XLE +2.34%) at the top. Utilities (XLU +0.75%) and Consumer Staples (XLP +0.22%) at the bottom. Expectation: Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Investors rushed back into risk assets as more assurances came from experts that Omicron might spread faster but have less severe symptoms. The drugmaker GlaxoSmithKline also reported that their antibody-based COVID-19 therapy is effective against the new variant. The Nasdaq gapped up at open, starting the day with a 2% gain and ending with a +3.03% gain. The candle is 83% green body with an upper wick and no lower wick. The closing of 92% includes the gap from yesterday's high. Volume was lower than the previous day, but gains were shared broadly with more than two advancing stocks for every declining stock. The S&P 500 (SPX) rose +2.07%, while the Dow Jones Industrial Average (DJI) gained +1.40%. Small-caps did well with the Russell 2000 (RUT), climbing +2.28%. The VIX Volatility Index dropped -19.46%. The volatility index is still at an elevated level. All S&P 500 sectors advanced for a second day. Technology (XLK +3.49%) and Energy (XLE +2.34%) were the top performers. The defensive sectors Utilities (XLU +0.75%) and Consumer Staples (XLP +0.22%) were at the bottom. Nonfarm Productivity for Q3 dropped more than expected, but it didn't seem to bother investors. Unit Labor Costs rose 9.6% compared to the expectation of 8.3%. The US Dollar index (DXY) remained flat, climbing only +0.01%. US 30y, 10y, and 2y yields rose, continuing their recovery after dropping among Omicron fears last week. High Yield (HYG) Corporate Bond prices rose sharply. Investment Grade (LQD) Corporate Bond prices ticked higher also. Crude Oil Futures are rising again. Timber (WOOD) had another steep advance, adding to yesterday's gains. The put/call ratio (PCCE) declined to 0.621. The CNN Fear & Greed index moved back toward neutral but is still at the Fear level. All four largest mega-caps had significant gains today, closing above their 21d EMA. Apple (AAPL) had a record close after a +3.54% gain. Alphabet (GOOGL) rose +2.87%. Amazon (AMZN) climbed by +2.80%. Microsoft (MSFT) advanced +2.68%. Nvidia (NVDA) topped the mega-cap list with a +7.96% gain. The list is primarily gainers today. Comcast (CMCSA) lost -5.29%, ending the day at the bottom of the mega-cap list after providing slower broadband growth guidance. The stocks in the Daily Update Growth List had a very good day. At the top of the list was MongoDB (MDB), gaining +16.42% after smashing earnings expectations. Sumo Digital (SUMO), Digital Turbine (APPS), and Fiverr (FVRR) all gained more than 10%. Only three stocks in the growth list declined. The biggest loser was DocuSign (DOCU) which continues to struggle after last week's disappointing guidance. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead After the market opens on Wednesday, the JOLTs Job Openings report will be available. The report made headlines last week as investors focused on the mass exodus of US workers. There was some evidence in last week's labor data that participation may be on the rise again. Crude Oil Inventories will be available later in the morning. There is a 10-Year Treasury Note Auction scheduled in the afternoon. GameStop (GME), RH (RH), and Lovesac (LOVE) are a few of the earnings reports for Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance Today, the Nasdaq closed above its 50d moving average and 21d exponential moving average. It also moved above the 15,400 and 15,600 support areas. If the one-day trend line continues, we can expect a +0.44% gain for Wednesday. If the index pulls back to the five-day trend line, that would mean a -2.16% decline. The trend line from the 11/22 high points to a -3.27% decline. 15,833.11 is the high of last week. Creating a higher high for this week will be a key indicator of a recovery from the Omicron sell-off. Reaching that milestone higher volume will make it an even more decisive move. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Optimism over the lower impact of Omicron sent markets on a rally today. Will the rally continue? Analysts still need to measure the response to positive pandemic news against the reactions from the Fed on monetary policy. There is also the question of which sectors should benefit from the news. Technology soared today, but many believe that value stocks and recovery stocks should lead the way for a rebound. This week will continue to be interesting. The expectation for Wednesday is Higher. A move up with more volume would be a confidence booster. Stay healthy and trade safe!

Daily Market Update for 12/6 Summary: Whiplash moves in the market driven by Omicron fears continued today. Optimism gained over the weekend as doctors reported mild symptoms for Omicron cases, and it seems vaccines are still effective against the new variant. The positive outlook helped drive markets higher today. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, December 6, 2021 Facts: +0.93%, Volume lower, Closing Range: 84%, Body: 31% Green Good: High closing range, rally off 15,000 support Bad: Lower high Highs/Lows: Lower high, Higher low Candle: Inside day, small green body in upper half of the candle Advance/Decline: 1.36, more advancing stocks than declining stocks Indexes: SPX (+1.17%), DJI (+1.87%), RUT (+2.05%), VIX (-11.38%) Sector List: Consumer Staples (XLP +1.76%) and Industrials (XLI +1.69%) at the top. Technology (XLK +0.95%) and Health (XLV +0.57%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Whiplash moves in the market driven by Omicron fears continued today. Optimism gained over the weekend as doctors reported mild symptoms for Omicron cases, and it seems vaccines are still effective against the new variant. The positive outlook helped drive markets higher today. The Nasdaq closed with a +0.93% gain. Volume was lower than the previous day. The closing range of 84% comes above a 31% green body in the upper half of the candle. The long lower wick formed in the first minutes after the market opened. However, investors bought the dip and brought the index back to the 50d moving average line, where it met resistance. There were more advancing stocks than declining stocks. The Russell 2000 (RUT) outperformed the other major indexes, gaining +2.05% today. The Dow Jones Industrial Average (DJI) also performed well, advancing +1.87% as investors looked for value in industrials and recovery stocks. The S&P 500 (SPX) climbed by +1.17%. The VIX Volatility Index remains high even though it declined -11.38% today. All eleven S&P 500 sectors gained today. Consumer Staples (XLP +1.76%) and Industrials (XLI +1.69%) were at the top of the sector list. Technology (XLK +0.95%) and Health (XLV +0.57%) were at the bottom. The US Dollar index (DXY) gained +0.15%. US 30y, 10y, and 2y Treasury Yields gained for the day. High Yield (HYG) Corporate Bond prices rose while Investment Grade (LQD) Corporate Bond prices declined. Crude Oil Futures moved higher after falling sharply for the past week. Timber (WOOD) prices rose as the index moved to its highest point since September. The put/call ratio (PCCE) dropped to 0.729 after nearly hitting 1.0 on Friday. The CNN Fear & Greed index moved back into Fear from Extreme Fear at the end of last week. All four largest mega-caps gained for the day. Apple (AAPL) gained +2.15%, although it faded back from an intraday gain of +3.73%. Microsoft (MSFT) has a long lower wick that tested the 50d moving average line before ending the day with a +0.98% gain. Amazon (AMAZN) gained +1.11%, and Alphabet (GOOGL) gained +0.81%. Both closed above their 50d moving average lines. Most mega-caps gained for the day. Alibaba (BABA) was the top mega-cap for the day, gaining +10.40% today as China tech seems to be on the rebound. The worst-performing mega-cap of the day was Pfizer (PFE) -5.14% as investors exited vaccine trades after more experts reduced fears in their Omicron outlook. Joining Alibaba (BABA) at the top of the Daily Update Growth List was FUTU Holdings (FUTU), a Chinese fintech stock that gained +10.01% for the day. Most of the stocks in the growth list gained, but some familiar names lost. Cloudflare (NET) declined -7.51%, beat in decline only by Zscaler (ZS), which lost -12.44%. Investors are moving away from richly priced tech stocks and looking at value stocks for the next cycle. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Trade Balance data for October will be available in the morning. We will also get a look at Nonfarm Productivity and Unit Labor Costs for Q3. In the afternoon, the API Weekly Crude Oil Stock will be released. AutoZone (AZO), Pagerduty (PD), and Dave & Busters (PLAY) are a few of the earnings releases for Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq got support around the 15,000 area before moving higher in the morning. It then reached resistance at the 50d moving average line before closing slightly below it. If the one-day trend line continues into Tuesday, that would mean a +1.72% gain. The trend line from the 11/22 high points to a -1.33% decline, while the five-day trend line ends with a -2.26% decline. We need to see a close above the 50d moving average at 15,279.93 as a first test of the rebound. Next, look for the index to move above 15,545.99, where the 21d exponential moving average line is now. Finally, 15,833.11 is the high of last week. Creating a higher high for this week will be a key indicator of a recovery from the Omicron sell-off. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up We are not out of the woods with Omicron. News headlines are still flashing positive and negative sentiment as the global story unfolds. It seems for now that fears are subsiding, and investors are optimistic again about value and reopening stocks. Given the inside day candle today, the expectation for tomorrow is Sideways. Stay healthy and trade safe!

Daily Market Update for 12/3 Summary: Omicron fears continued to drive a volatile week while investors tried to understand the impact of mixed employment data on Fed bond purchase tapering. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, December 3, 2021 Facts: -1.92%, Volume lower, Closing Range: 29%, Body: 64% Red Good: Support at 15,000 Bad: Close below 50d moving average, closing range, decline on higher volume Highs/Lows: Higher high, Lower low Candle: Outside day, mostly red body with a long lower wick Advance/Decline: 0.3, more than three declining stocks for every advancing stock Indexes: SPX (-0.84%), DJI (-0.17%), RUT (-2.13%), VIX (+9.73%) Sector List: Consumer Staples (XLP +1.24%) and Utilities (XLU +1.00%) at the top. Technology (XLK -1.67%) and Consumer Discretionary (XLY -1.94%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Omicron fears continued to drive a volatile week while investors tried to understand the impact of mixed employment data on Fed bond purchase tapering. The Nasdaq lost another -1.92% today. That brought the weekly decline to -2.92%, and the index is -6.95% below the all-time high set last week. The candle is 64% red body with a longer lower wick. The closing range of 29% signals that the bears were in control. The higher high and lower low create a bearish outside day. There were three declining stocks for every advancing stock. The Dow Jones Industrial Average (DJI) performed the best for the day, declining only -0.17%. The S&P 500 (SPX) fell -0.84%. The Russell 2000 (RUT) dropped -2.13%. The VIX Volatility Index rose +9.74%. Only three of the eleven S&P 500 sectors gained. They were defensive sectors. Consumer Staples (XLP +1.24%) and Utilities (XLU +1.00%) were the top two sectors. Technology (XLK -1.67%) and Consumer Discretionary (XLY -1.94%), both growth sectors, were at the bottom. Only 210,000 Nonfarm Payrolls were added in November. Analysts expected 550,000. However, the Unemployment Rate dropped to 4.2%, beating the expectation of 4.5%. The two together sent mixed signals to investors trying to figure out the impact on Fed monetary actions. The ISM Non-Manufacturing Purchasing Managers Index showed higher than expected economic activity, registering 69.1 against the expectation of 65.0. Markit Composite PMI and Services PMI were also higher than expected. The US Dollar index (DXY) rose +0.02%. The US 30y and 10y Treasury yields dropped sharply again. The 2y Treasury yield also declined. There was no change to High Yield (HYG) Corporate Bond prices, but Investment Grade (LQD) Corporate Bond prices rose. All four largest mega-caps declined today. Microsoft (MSFT) had the most significant decline, ending the day with a -1.97% loss after testing support at its 50d moving average line. Amazon (AMZN) dipped below its 200d moving average before recovering to end the day with a -1.38% decline. Alphabet (GOOGL) continues to trade around its 50d moving average, dipping -0.67% today. Apple (AAPL) is the only of the four to trade above its 21d exponential moving average and 50d moving average. Pepsico (PEP) was the top mega-cap for the day, gaining +2.55%, benefiting from defensive investments in the consumer staple sector. The worst-performing mega-cap was Adobe, declining -8.24% today. Only three stocks in the Daily Update Growth List advanced today. Zynga (ZNGA) and UP Fintech (TIGR) gained +5.89% and +5.49%, while Workday (WDAY) held onto a small gain of +0.12%. At the bottom of the list, DocuSign (DOCU) plunged -42.22% after providing a very disappointing revenue outlook to investors during its earnings call. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There are no major US economic data scheduled for Monday. MongoDB (MDB), Coupa Software (COUP), GitLab (GTLB), H&R Block (HRB), and Sumo Logic (SUMO) will report earnings on Monday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq closed below its 50d moving average line, continuing to decline until getting support at the 15,000 area. If the index returns to the trend line from the 11/22 high, that will mean a +0.10% gain for Monday. The five-day trend line points to a -1.24% decline. If the one-day trend line continues, that would mean a -2.52% decline on Monday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up There are two forces this week causing declines in the indexes. The one all over the news in fears of the Omicron variant. However, there is plenty of emerging commentary that Omicron may not be as bad as initially thought. The second force has been the talk of accelerated tapering from the Fed's Jerome Powell. Early in the week, he showed a change in attitude toward inflation, removing the word transitory from describing it. He indicated that more aggressive action might be required to control an overheated economy. Given the low employment rate, investors seem sure that bond purchase tapering will happen faster than previously expected, and more interest rate hikes can be expected from a hawkish Fed. The expectation for Monday is Lower. Stay healthy and trade safe!

Daily Market Update for 12/2 Summary: Markets bounced back from the Omicron fear-driven declines this week. The gains were broad across the market, sending all S&P 500 sectors higher. Yet, there is still progress to be made before investors can feel comfortable. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, December 2, 2021 Facts: +0.83%, Volume lower, Closing Range: 79%, Body: 68% Green Good: Gain on good volume, good closing range, advance/decline ratio Bad: Lower high, lower low Highs/Lows: Lower high, Lower low Candle: Longer upper wick over green body, no lower wick Advance/Decline: 1.44, more advancing stocks than decline stocks Indexes: SPX (+1.42%), DJI (+1.82%), RUT (+2.74%), VIX (-10.19%) Sector List: Financials (XLF +2.98%) and Industrials (XLI +2.97%) at the top. Technology (XLK +0.92%) and Health (XLV +0.49%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets bounced back from the Omicron fear-driven declines this week. The gains were broad across the market, sending all S&P 500 sectors higher. Yet, there is still progress to be made before investors can feel comfortable. The Nasdaq closed +0.83% higher, performing not as well as the other indexes as investors focused on value stocks and the small-cap segment. Volume was lower than the previous day but higher than the 50-day average volume. A 68% green body covers the candle, with a long upper wick and no lower wick. The closing range of 79% is excellent, and there were more advancing stocks than declining stocks. Small-caps in the Russell 2000 (RUT) outperformed the larger stocks, and the index gained +2.74%. Broad gains across all sectors helped the S&P 500 (SPX) to a +1.42% gain. The Dow Jones Industrial Average (DJI) also had an outstanding performance, climbing +1.82%. The VIX Volatility Index is still high, despite receding -10.19% today. All eleven S&P 500 sectors gained for the day. Financials (XLF +2.98%) and Industrials (XLI +2.97%) were at the top of the sector list. Technology (XLK +0.92%) and Health (XLV +0.49%) were at the bottom of the list. The weekly Initial Jobless Claims came in at 222,000, better than the expected 240,000. The US Dollar index (DXY) rose +0.10% today. US 30y, 10y, and 2y Treasury Yields gained. High Yield (HYG) Corporate Bond prices are higher today as they continue to bounce up and down over the past week. Investment Grade (LQD) Corporate Bond prices were also higher for the day. Gold prices are back to where they were at the beginning of November, and silver is back to where it was in October. They rose during the first part of last month but sold off sharply in the past few weeks. Of the four largest mega-caps, only Alphabet (GOOGL) gained today, rising +1.36% and closing above its 50d moving average line. Apple (AAPL) declined -0.61% to close just above its 21d EMA. The company signaled lower demand for the holiday season. Microsoft (MSFT) and Amazon (AMZN) declined -0.18%. Microsoft closed just below its 21d exponential moving average while Amazon tested support at its 50d moving average. Comcast (CMCSA) was the top mega-cap for the day, rising +4.93%. Most mega-caps gained for the day. Pfizer gave back some recent gains, declining -3% today and ending at the bottom of the mega-cap list. Snowflake (SNOW) soared to the top of the Daily Update Growth List with a +15.85% gain after smashing earnings and revenue estimates. Okta (OKTA) gained +11.66% after beating earnings guidance. Ehang (EH) holdings dropped to the bottom of the list with a -13.53% decline. The company's quarterly loss was wider than expected. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead We will get additional labor data on Friday morning. Average Hourly Earnings, Nonfarm Payrolls, the Participation rate, and the Unemployment Rate are among the data points available before the market opens. The ISM Non-Manufacturing PMI will be available after the market opens. Big Lots (BIG) will report earnings tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq moved above the 50d moving average line and met resistance in the 15,400 area. If the one-day trend line continues into Friday, expect another +1.05% gain. The five-day trend line and the trend line from the 11/22 high point to a -0.40% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Omicron fears subsided today, allowing markets to recover from the recent sell-off. However, we are not out of the woods. The Nasdaq has a lower high and lower low today, which continues a downtrend. Look for a new daily high and a push upward on higher volume to build confidence. Next week, we'll need to see a new weekly high. As it is, the expectation for Friday is Sideways. Stay healthy and trade safe!

Daily Market Update for 12/1 Summary: Fears over omicron continued to put pressure on markets, despite optimism that drove a morning rally. Not only did the US find its first case of the new variant, but the Fed's Jerome Powell signaled that inflation might not recede next year as previously thought. The two caused markets to give up early gains and decline further. Notes Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, December 01, 2021 Facts: -1.83%, Volume lower, Closing Range: 2%, Body: 87% Red Good: Nothing Bad: Failed morning rally turned into a huge sell-off Highs/Lows: Lower high, Lower low Candle: Longer upper wick above a long red body, tiny lower wick Advance/Decline: 0.22, more than four declining stocks for every advancing stock Indexes: SPX (-1.18%), DJI (-1.34%), RUT (-2.34%), VIX (+14.45%) Sector List: Utilities (XLU +0.18%) and Health (XLV -0.18%) at the top. Consumer Discretionary (XLY -1.80%) and Communications (XLC -2.31%) at the bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Fears over omicron continued to put pressure on markets, despite optimism that drove a morning rally. Not only did the US find its first case of the new variant, but the Fed's Jerome Powell signaled that inflation might not recede next year as previously thought. The two caused markets to give up early gains and decline further. The Nasdaq ended the day with a -1.82% decline. The morning started with a +1.8% gain, but then worries crept back in, causing the index to lose more than -3.6% from the intraday high. The candle has a longer upper wick above an 87% red body. The 2% closing range shows bears were in control all the way into close. Volume was slightly lower than the previous day but still elevated over the 50d average volume. There were more than four declining stocks for every advancing stock. Small caps had the worst performance, with the Russell 2000 (RUT) declining -2.34%. The S&P 500 (SPX) fell -1.18%, and the Dow Jones Industrial Average (DJI) declined -1.34%. The VIX Volatility index closed the day at its highest level since January, climbing +14.45% today. Utilities (XLU +0.18%) was the only S&P 500 sector that gained for the day. Energy (XLE -1.06%) was the leading sector before the morning reversal. Health (XLV -0.18%) was the second-best sector for the day. Consumer Discretionary (XLY -1.80%) and Communications (XLC -2.31%) were at the bottom of the sector list. ADP Nonfarm Employment Change for November was higher than expected. ISM Manufacturing Employment also increased with the Purchasing Managers Index rising to 61.1, compared to the expectation of 61.0. The US Dollar index (DXY) rose +0.15%. US 30y, 10y, and 2y Treasury Yields started the morning higher but ended the day lower. High Yield (HYG) Corporate Bond prices declined to their lowest point in 2021. Investment Grade (LQD) Corporate Bond prices also fell today, but not as sharply. The put/call ratio rose to 0.770. The CNN Fear & Greed index moved into the Extreme Fear area. All four largest mega-caps declined for the day. Apple (AAPL) set a new all-time high before falling, ending the day with a -0.32% loss. Microsoft (MSFT) declined -0.15%, closing below its 21d EMA for the second day. Alphabet (GOOGL) moved further below its 50d MA with a -0.60% decline. Amazon (AMZN) dropped the most, losing -1.81%. Taiwan Semiconductor (TSM) soared +5.42% in the morning before giving back some of the gains. TSM still topped the mega-cap list with a +2.97% gain for the day. Pfizer (PFE), Johnson & Johnson (JNJ), and Procter & Gamble (PG) all gained more than 1% for the day, closing among the few gainers in the mega-cap list. Salesforce.com (CRM) disappointed investors on their revenue outlook, dropping the stock to the bottom of the list with a -11.74% decline. Only three stocks in the Daily Update Growth List gained for the day. JD.com was the top gainer with a +1.27% advance. The biggest loser was CloudFlare (NET), declining -12.77% today. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The weekly Initial Jobless Claims data will be available in the morning. Marvell (MRVL), Dollar General (DG), Kroger (KR), Domo (DOM), and Ehang (EH) are a few of the earnings reports expected tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dropped below another support level at 15,400 to close right at its 50d moving average line. All trend lines are downward moving. If the index can return to the five-day trend line, it would mean a +1.98% gain for tomorrow. The trend line from the 11/22 high points to a +1.53% gain. If the one-day trend line continues into Thursday, expect a -2.22% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Markets were in free fall on Wednesday as the drama around the Omicron variant continued to grow. Governments are responding aggressively to the new variant as scientists scramble to answer questions on how fast it will spread and whether it will bypass vaccines and natural immunity. Still, a lot of today's decline could be from Jerome Powell's statements on continued high inflation in the second half of 2022. Those statements are signaling a much more hawkish Fed, which could accelerate bond tapering and interest rate hikes. The expectation for Thursday is Lower. Stay healthy and trade safe!

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