Santa Claus rally not seen, US equities decline sharply, but primary uptrends intact

From Investing.com: 2024-12-23 06:29:52

With the Santa Claus rally nowhere in sight, U.S. equities are under pressure as major indices pull back sharply from year-to-date highs, with declines between 5% to 10%. Despite this, primary uptrends remain intact, with potential for a rally. The S&P 500 leads technically, down just 4% from its peak.

Technical indicators show the Nasdaq testing critical support near its November 6 bullish gap, while the Dow narrowly avoided a 10-day losing streak. Analysts advise waiting for support confirmation before buying the dip for a potential Santa Claus rally. The VIX surged to a four-month high, while the 10-year Treasury yield nears critical resistance.

Energy, Materials, and Healthcare sectors are oversold, with breadth indicators deteriorating as advancers are outnumbered by decliners. The 40-week technique may soon trigger a sell signal, adding to bearish sentiment. The dollar hit a two-year high, suggesting further upside, while commodities like gold and silver are under pressure with key supports broken.



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