Week in Review: What’s Ahead 12/16-12-20 and Upstart
Closing numbers for Friday
For the week of December 9–13, 2024, the Dow Jones
The Dow Jones Industrial Average (DJIA) for the week of December 9–13, 2024, the index displayed characteristics closer to distribution than consolidation, which to me shows profit taking as expected. The Dow saw a decline of approximately 0.3% for the week. This was primarily influenced by broad selling in key components like UnitedHealth Group, which dropped significantly, and a limited number of stocks showing strength. Volume was generally lower than the 20-session average during this period, indicating reduced participation by market players.
For the week of December 9–13, 2024, the NASDAQ Comp
The NASDAQ Composite rose 0.8% for the week, marking a continued uptrend with new intraday highs, signaling accumulation. The performance was bolstered by gains in large-cap technology stocks. The volume on the NASDAQ was mixed but slightly above average on positive days, supporting the bullish momentum.
For the week of December 9–13, 2024, the S&P 500
Delivered a slight weekly gain, with financials and consumer discretionary sectors balancing out declines in energy. The S&P 500 mirrored the NASDAQ’s upward movement, breaking out of its recent trading range. Volume was mixed but slightly below average overall, leaning toward consolidation with a bullish bias. Like the NASDAQ, technical indicators remained supportive, with On-Balance-Volume showing an uptick.
For the week of December 9–13, 2024, the Russell 2000 showed mixed behavior
- Performance: The Russell 2000 declined slightly by 0.6%, ending the week at approximately 2,346.90. This represented a pullback from recent highs but maintained its position near a 16-month peak.
- Volume and Breadth: Volume was relatively consistent but slightly lower compared to the prior week. Over 80% of Russell 2000 stocks remained above their 50-day moving averages, signaling underlying strength despite the dip.
- New Highs vs. New Lows: The number of stocks reaching new highs slightly declined compared to the prior week, aligning with the general consolidation observed in the small-cap segment.
- Market Behavior: The week appeared to lean more toward consolidation rather than profit-taking or heavy accumulation. This reflects a pause following recent strong upward momentum as investors reassess positions heading into the end of the year.
Why is the above important?
The prevailing market trend should guide your trading strategy. Avoid short positions during a bullish market, as upward momentum typically prevails. Similarly, it is prudent not to counter downward momentum unless you have a long-term investment perspective. At present, all major exchanges are demonstrating a bias to the upside, reflecting a robust bullish sentiment across the markets.
Upstart (UPST)
Check out Upstart’s trading update in “Stock Picks”. Don’t miss today’s critical analysis of Upstart stock performance, including what’s ahead on potential future trends. Stay ahead by reviewing the latest trading dynamics and market implications.