E Tuesday Talk: Of Stocks And Dollars

While the nation teeters between relief and anxiety, the stock market, teetering too, seems (at this point) to be determined to look through to (and beyond) January 21. While the markets posted new highs on Friday, Monday the S&P 500 closed at 3,799, down 25 pts, the Dow closed at 31,009, down 89 pts and the Nasdaq 100 closed at 12,897 down 208 pts. Currently futures for all 3 indices are green.

Talk Markets contributor Jharonne Martis in COVID-19 Stimulus Payments Inspire Saving Over Spending, says, perhaps out of anxiety, many Americans are planning to add the next round of COVID relief checks to their savings.

"The (stimulus) program was intended to fuel economic activity by consumers. However, a large proportion of Americans are telling us that they will be saving their stimulus checks instead, followed by paying off debt. Therefore, they are not directly putting the money back into the economy. The survey shows that one in five Americans intends to spend their stimulus check... There are more than 10 million Americans unemployed and they are most likely to spend their stimulus checks on basic living expenses."

With regards to market activity Declan Fallon, in Minor Losses Keep Markets Near Highs takes a look at the major charts and says that "Losses were not unexpected and trading volume was light."

Assessing Monday's activity on the Nasdaq (QQQ), he says: "Nasdaq was one of the worst-hit on the day, but the mini push to a new swing high is still intact; the 20-day MA is the support level to watch."

Regarding the S&P 500: "The S&P lost less than 1% as it too came back off its high. The rising trendline is the support level here. Technicals are all net positive. This is a hold if you have the SPY ETF (SPY). "

Wrapping up with a look at the Russell 2000 (IWM) Fallon notes: "The Russell 2000 registered a very small loss as it retains its leadership role in the market. As with the S&P and Nasdaq, we can look to the 20-day MA for support. Technicals are all net positive."

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