S&P500
The US market showed strong gains for the week and is ready to end the year at record highs. The correction, which started a week before Christmas, was interrupted by investors, who with their aggressive buying of stocks on the downside turned the indices up. This resulted in 5 consecutive days of gains and new yearly highs.
Notably, fundamentally, the market is rising, ignoring the negativity. A new strain of Covid rages in the US. The number of new infections is as high as 260 K cases. Also, globally, omicron is just starting to spread globally. In addition, the Fed has begun to tighten policy. All this is not good for the growth of the stock market. However, we are seeing a record high close for the S&P500 index on December 27.
Notably, only the S&P500 made new highs for the year. The Dow and NASDAQ, although rising strongly, did not surpass the highs of November. This probably indicates that index funds linked to the S&P500 are very popular with the average investor.
US indices for week:
The Dow stays in the range of 35,070 – 36,300. It added 1230 points or 3.5%.
The NASDAQ remains in the range of 15,130 - 15,870. It rose by 740 points or 5%.
The S&P500 is trading in the range of 4,600 – 4,790. It gained 190 points or 4%.
Outlook:
The Dow is likely to remain in the range of 36,000 - 36,500.
The NASDAQ is likely to stay in the range of 15,600 - 16,000.
The S&P500 is expected to be in the range of 4,720 - 4,850.
The market is getting ready for the holidays and real new moves and plans will already start next year. Investors should be cautious; they should buy on declines. However, it should be clear that quite strong market downturns are possible. There will definitely be a market correction in January.
