Entrepreneur
Kurra Bewarse Username: Entrepreneur
Post Number: 3954 Registered: 05-2011 Posted From: 24.164.46.35
Rating: N/A Votes: 0 | Posted on Friday, January 21, 2022 - 12:18 pm: | |
Market Briefing: A technical driver The stock market is in a much better position than it was a little more than an hour ago when ongoing de-risking efforts carried the S&P 500 below its 200-day moving average (4429). The violation of that key technical support level, though, stirred the buy-the-dip masses. What has unfolded in the interim is a rebound with technical underpinnings. It counts all the same, but there wasn't a fundamental news trigger for the turnaround. Of course, the pressing question now is, will this rebound move be sustained or will it again succumb to an inclination to sell into strength? We haven't the answer, but market participants will be keeping a close watch on this key technical support level now that it has proven to be an inflection point for today's action. Another re-test, and failure, could trigger a renewed escalation in selling interest. The information technology sector (+0.5%), down 1.3% earlier, has played a featured role in the recovery effort. Similarly, the consumer discretionary sector (-0.4%), down 2.4% earlier, is also on the mend. The Russell 2000 is up 0.7%; the Dow Jones Industrial Average is up 0.3%; the S&P 500 is up 0.1%; and the Nasdaq Composite is down 0.1%. |