LIVE MARKETS S&P 500 notches new high

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  • Major U.S. indexes green; FANGs, chips outperform
  • Tech leads S&P sector gainers; energy sole loser
  • Euro STOXX 600 index up ~0.5%
  • Dollar, crude ~flat; gold edges up, bitcoin rises
  • U.S. 10-Year Treasury yield ~flat at 1.49%

Dec 27 – Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

S&P 500 NOTCHES NEW HIGH (1003 EST/1503 GMT)

The S&P 500 (.SPX) hit a fresh record high early Monday, as strong retail sales underscored the strength of the economy and overshadowed worries from Omicron-driven flight cancellations.

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With this, the main U.S. indexes are all on track to rise for a fourth-straight day, as investors look for a Santa Claus rally to place more gifts under the market’s tree. read more

Indeed, the SPX has extended as high as 4,755.70, exceeding its Nov. 22 record intraday high of 4,743.83.

Under the surface, chips (.SOX) and FANGs (.NYFANG) are among outperformers. Retail stocks (.SPXRT) are up just slightly. Airlines (.XAL), and small caps (.RUT) are under pressure.

Here is where markets stand in early trade:

earlytrade12272021

(Terence Gabriel)

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BROADER NASDAQ: DUE FOR MORE THAN A FEW-DAY BOUNCE? (0900 EST/1400 GMT)

The Nasdaq Composite (.IXIC) gained more than 3% last week. read more

With this, one measure of internal strength, the Nasdaq McClellan Summation (McSum), which is based on advancing and declining issues, posted back-to-back up days on Wednesday and Thursday for the first time in more than a month read more :

IXIC12272021

The McSum ended last Tuesday at -5,106, which was its lowest level since early-April 2020. The question now is – whether this measure became sufficiently washed out that the broader Nasdaq can go the other way, and see a period of sustained strength.

Even with its sudden rise, the McSum still needs to reclaim its descending 10-day moving average (DMA), but there certainly is room for it to rise before it would meet the resistance line from its early-2021 peak, or its June/November highs.

That said, a break of last Tuesday’s low would suggest its downtrend was resuming. Its December-2018/March-2020 lows were in the -5,425/-6,207 area. A decline to the late-2008 trough/support line from 2012 would call for the -6,896/-7,100 area. The support line from 2012 contained the 2018 and 2020 weakness.

Meanwhile, another measure, the Nasdaq New High/New Low (NH/NL) index has fallen back below its 10-DMA. However, at 19.8%, it remains above its early-December trough at 12.5%, which was also its lowest level since early-April 2020. read more

In any event, CME e-mini Nasdaq 100 futures are quoted up around 0.5% ahead of the open, and on track to rise for a fourth-straight day. read more

(Terence Gabriel)

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LIVE MARKETS EUROPE TO RETURN ON DECEMBER 29: read more

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Terence Gabriel is a Reuters market analyst. The views expressed are his own

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