Hello! Here’s what’s happening in the market today…
The S&P 500 closed out the year up more than 25% and while every index posted better than average returns the SPY was by far the winner.
This is despite headlines about bear markets, the delta, and omicron variants.
Now its time to jump right into the new year without even so much as a holiday buffer…
This morning omicron is still stealing the headlines as the case count rises. But hospitalizations are nowhere near the levels reported earlier in the pandemic. The current track of the virus indicates its fading.
No major overhead resistance levels to report. The DOW, NASDAQ, and SPY are so close to record highs it’s almost all blue sky overhead.
The Russell 2000 remains far from record highs. After bouncing off support before Christmas it’s back in the range it occupied for the majority of the previous year. I’m bullish on the small caps and am still holding TNA. My next profit target is $93, I’ll exit this position by the end of the month.
At the close on Friday the main indicators I watch, RSI and the put-to-call ratio, are in a neutral stance. The path of least resistance is up.
If you haven’t read my 2022 assessment you can find it here.
Historically this is a very bullish time of year, especially for small caps. If January fails to perform that could serve as an early warning sign of trouble ahead.
But futures are up, pointing towards a green open across the board. Even Bitcoin has refused to let the bears take over. I’m bullish and risk on.
*CELZ has support at $3
*SPRB has resistance at $5
*NTRB is on watch
*NES has support at $3
*NYC is on watch
PRDS is on watch
MBI has resistance at $16
XERS has resistance at $3
DNUT has support at $18.50
^XXII has support at $3
NAKD after Friday’s weak close I liquidated my position.