Stock Market Recap: Monday, Jan. 11, 2021
Wall Street pulled back from last week’s strong rally as traders locked in gains, with prospects of President Donald Trump’s impeachment trial stoking fears of a delay in further pandemic relief — and more in Monday’s stock market recap.
House Speaker Nancy Pelosi is looking to impeach Trump again if Vice President Mike Pence doesn’t attempt to remove him. Key members of the House Judiciary Committee introduced a single article of impeachment that has already gathered at least 218 cosponsors, meeting the majority needed in the House.
Stock Market Recap
The Nasdaq lost 1.3% after trading to an opening low of 12,999.
The S&P 500 declined 0.7% with the morning low tapping 3,789.
The Dow dipped 0.3% following the fade to 30,832 shortly after the opening bell.
The Russell 2000 was down 0.03%, with the first-half low kissing 2,061.
Energy led sector strength after jumping 1.6% while Healthcare and Financials added 0.5% and 0.3%, respectively. Consumer Discretionary and Communication Services stumbled 1.9% and 1.8% to pace sector laggards.
Stock Market Movers
Shares of Bit Digital Inc. (Nasdaq: BTBT) plummeted 25% amid a decline in Bitcoin prices and a research firm highlighting the stock as a potential short idea.
Stock Market Outlook
The AAII Sentiment Survey revealed bullish sentiment closed at 71.6% last week. Optimism has remained above its historical average of 38% for the ninth straight week.
Neutral sentiment was at 10.6% and below its historical average of 31.5%.
Bearish sentiment was seen at 17.8%. Pessimism remained below its historical average of 30.5% for the ninth consecutive week, as.
Global Economy
In the global stock market recap, European markets closed lower across the board as surging coronavirus cases weighed on sentiment.
The Belgium20 dropped 1.4% and the UK’s FTSE 100 tumbled 1.1%. France’s CAC 40 and Germany’s DAX 30 gave back 0.8% while the Stoxx 600 was off 0.7%.
Asian markets settled mostly lower with Japan’s Nikkei closed for a holiday.
China’s Shanghai sank 1.1% and Australia’s S&P/ASX 200 fell 0.9%. South Korea’s Kospi slipped 0.1%. Hong Kong’s Hang Seng edged up 0.1%.
China inflation numbers showed a higher-than-expected pick up of 0.2% year-over-year in December, after a drop of -0.5% in the previous month.
U.S. Economy
No major announcements
Stock Market Sentiment
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its losing streak to six sessions with the morning low tapping $150.49. Longer-term and upper support from late March at $150.50-$150 was breached but held. A move below the latter would indicate additional downside risk towards $149-$148.50.
Lowered resistance is at $151.50-$152.
Volatility Index
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) snapped a four-session slide after trading to a late-day peak of 24.81. Current and lower resistance at 24.50-25 and the 50-day moving average were breached but levels that held. A move above the latter would indicate a retest towards 25.50-26.
Fresh support is at 23.50-23 followed by 22-21.50.
Stock Market Analysis
The SPDR Small-Cap 600 ETF (NYSE: SLY) rebounded following the first-half push to $84.94. Near-term and lower resistance at $85-$85.50 was challenged but held. A close above the latter and last Friday’s all-time high at $85.89 would signal additional momentum towards the $86.50-$87 area.
Near-term and upper support is at $83.50-$83 followed by $82-$81.50.
RSI (relative strength indicator) has flatlined with key resistance at 75 holding. A close above 75 would indicate additional strength towards 80-85 and overbought levels from September 2017. Support is at 70-65.
Sector
The Real Estate Select Sector SPDR Fund (NYSE: XLRE) fell for the first time in three sessions after tagging an afternoon low of $34.96. Key support at $35 was breached but held. A close below this level would suggest additional weakness towards $34.75-$34.50 and the 200-day moving average.
Resistance at $35.50-$35.75.
RSI is back in a downtrend after failing to hold upper support at 45-40. A move below the latter would suggest weakness towards 35 and the late October low. Resistance is at 50.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.