Outlaw_Johnny_A

The stock market this week is particularly focused on the Consumer Price Index (CPI) reading this Wednesday because it is a critical indicator of inflation.

During the week of January 6 to January 10, 2025, both the S&P 500 and the NASDAQ Composite experienced notable movements influenced by various economic factors.

On Friday, January 3, 2025, U.S. stock markets experienced a notable rebound, breaking a five-day losing streak.

Following the U.S. presidential election on November 5, 2024, where Donald Trump secured victory, U.S. stock markets experienced a significant surge.

The concept of a "Santa Claus Rally" refers to a historical trend where stock markets often experience gains during the end-of-year holiday period.

It looks like the sharp market decline could be "panic selling," highlighting a significant surge in the CBOE Volatility Index (VIX), which jumped significantly (74%)—the second-largest increase on record.

The Federal Reserve reduced its benchmark federal funds rate by 25 basis points, bringing it to a range of 4.25% to 4.5%. This marks the third consecutive rate cut this year.

Today’s market session was relatively subdued, as investors await the Federal Reserve's statement on December 18th.

The prevailing market trend should guide your trading strategy. Avoid short positions during a bullish market, as upward momentum typically prevails.

For the trading week from December 2 to December 6, 2024, here is my analysis of the major U.S. indices: