“The SEC said Friday that it is evaluating the extreme price volatility of certain stocks’ trading prices warning that such volatility can expose investors to rapid and severe losses and undermine market confidence“–Paul Ebeling
Friday, the S&P 500 tested to it 50-D MA, as it fell 1.9%, its benchmark its biggest weekly decliner since October. The DJIA and NAS Comp each fell 2%, and the Russell 2000 declined 1.6% on the day.
GameStop (NYSE:GME) spiked 70%, clawing back some of its loss from Thursday after Robinhood said it will allow account holders to come beck into the market. GameStop has run up 1,600% run over the past 3 wks and as brigades of small investors battle the Wall Street short-side professionals.
In Europe and Asia we are seeing renewed travel curbs and strong headwinds in Washington over Mr. Biden’s proposed $1.9-T economic aid idea.
Not an idea but a reality: the Fed’s has pledge to keep its petal to the metal to bolster the economy. Historically low interest rates from the Fed are high octane fuel for stocks and other investments.
Friday, the benchmark US stock market indexes finished the wk and month at: DJIA -620.74 to 29982.62, NAS Comp -266.46 to 13070.70, S&P 500 -73.14 to 3714.24
Volume: Trade on the NYSE came in at 1.6-B/shares exchanged
HeffX-LTN’s overall technical analysis for the major US stock market indexes for the wk and month ending 29 January 2021 is Neutral to Bullish with a long-term Very Bullish bias.
- Russell 2000 +5.0% YTD
- NAS Comp +1.4% YTD
- S&P 500 -1.1% YTD
- DJIA -2.0% YTD
Looking Ahead: Investors will receive the ISM Manufacturing Index for January and Construction Spending for December Monday.
Have a healthy weekend, Keep the Faith!