(DAILY NOTION): A Much Better Closing For SPX500, NAS100, US30, But Can This Sustain? Next Mover: FOMC Meeting Minutes, Nonfarm Payrolls

NASDAQ 100 (as of Jan 6, 2021 at 3 p.m.)

Source: Yahoo Finance

SPX 500 (as of Jan 6, 2021 at 3 p.m.)

Source: Yahoo Finance

US30 (as of Jan 6, 2021 at 3 p.m.)

Source: Yahoo Finance

It was a better closing on for the major Wall Street indices as the NAS100 rose 0.80%, the SPX500 was up 0.69% and the US30 moved up 0.61%. This was contributed by gains in the basic materials, industrials, and particularly, the oil and gas sectors. The energy stocks received a boost as oil prices moved above $50 for the first time since February. This was led by Saudi Arabia’s pledge to cut output by 1 million barrels per day.

The CBOE Volatility Index was down 5.38%. The index, which is also known as VIX, measures the market expectations of SPX500 options volatility over the next 30 days.

Yasen Ibrahim from Investing.com has reported that Goldman Sachs is projecting a U.S. Gross Domestic Product (GDP) growth of 5.9% and continued interest rate. He also reports that the consensus in the market projects that the rally will continue as earnings grow. The Sun Malaysia has also reported that U.S. corporate earnings are forecasted to rebound by 22.1% in 2021.

Zachs Investment Research believes that NAS100 has potential to grow in 2021. Among tailwind factors are the increased dependency on digitalization, which would benefit the technology-heavy NAS100. However, would be blue sweep victory in the U.S. Georgia Runoff Elections limit these gains?

There continue to be jitters in the market over the outcome of the U.S. Georgia Runoff Elections. Another important event this week would be the release of the Federal Open Market Committee (FOMC) December meeting minutes as well as the nonfarm payrolls data this Friday. The ADP December jobs report is forecasted to increase by 88,000, so let’s keep watch.

FOLLOWME User Sentiment (as of Jan 6, 2021 at 3 p.m.)

SPX500

Short – 73.58%

Long – 26.42%

NAS100

Short – 65.38%

Long – 34.62%

US30

Short – 71.76%

Long – 28.24%