We could see a tepid recovery of yesterday’s “shock drop” in equities (as I described here), until the Fed’s next interest rate hike (possibly in March), to send Major Indices to levels somewhat higher than their recent all-time highs. But, we’ll likely see higher volatility remain in play and, possibly, more wild price swings, until then.

As I promised in that post, here’s January’s month-end summary.

DOW 30 INDEX

The first daily chart shows that the Dow 30 Index failed to fill yesterday’s gap down and closed 100 points above its low of the day.

Momentum remains above the zero level, but has dropped dramatically after failing to rise to a new high when the Dow made its last new high on January 26. It’s an important level to hold in support of such a recovery. Otherwise, a drop and hold below zero would see further weakness in the Dow.

S&P 500 INDEX

The next daily chart shows that the S&P 500 Index failed to fill yesterday’s gap down and closed off its low of the day. The VIX is overlayed on this chart and price remains above near-term support of 13.00.

Momentum remains above the zero level, but has dropped dramatically after failing to rise to a new high when the SPX made its last new high on January 26. It’s an important level to hold in support of such a recovery. Otherwise, a drop and hold below zero would see further weakness in the SPX.

NASDAQ COMPOSITE INDEX

The next daily chart shows that the Nasdaq Composite Index came within a couple of points of filling yesterday’s gap down and closed off its low of the day. 

Momentum remains above the zero level, but has dropped dramatically after failing to rise to a new high when the Nasdaq made its last new high on January 26. It’s an important level to hold in support of such a recovery. Otherwise, a drop and hold below zero would see further weakness in the Nasdaq.

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