From Nasdaq:

As we head into the new year, markets are gearing up for what is expected to be an interesting and potentially volatile year. The last week of 2023 saw the lowest average trading volume of the year, hinting at a cautious start to 2024. Investor sentiment is currently bullish, but history suggests this may not bode well for the market. The technology sector, particularly big tech stocks, may see a sell-off in the new year.

The biggest news for the year occurring in the technology sector was Tesla, which had the highest trading volume among all S&P 500 stocks in 2023. Stock price has seen a series of lower highs and higher lows, forming a triangular pattern, indicating significant volatility and indecisiveness. The battle between supply and demand is converging, and investors should be watching for a potential breakout in either direction.

Markets could see some selling out of the technology sectors in the new year, particularly after a sharp advance following news of falling inflation numbers and the possibility of the Fed lowering interest rates. Overall, this remains a risky environment and could be a rocky start to the year.



Read more: Chart of the Week: Tesla