(DAILY NOTION): A Big Week Ahead for The U.S, But What About Wall Street? Next Mover: Biden's Inauguration, U.S. PMI Data Release

NASDAQ 100 (as of Jan 18, 2021 at 3.30 p.m.)

Source: Yahoo Finance

SPX 500 (as of Jan 18, 2021 at 3.30 p.m.)

Source: Yahoo Finance

US30 (as of Jan 18, 2021 at 3.30 p.m.)

Source: Yahoo Finance

As the third week of the year begins, Analyst Declan Fallon from Investing.com points out all US30, NAS100, and SPX500 could most likely be testing rising support trendlines. The US30 is moving along rising support, but the Moving Average Convergence Divergence (MACD) has ‘sell’ triggers. Meanwhile, the NAS100 is also moving along a support trendline, which Fallon observes to be mapping the 20-day moving average (MA). A similar pattern is observed with the SPX 500 as it runs along with its 20-day MA. However, the MACD is still indicating a ‘sell’ trigger.

In the U.S., it will be an eventful week as President-elect Joe Biden’s inauguration is only days away now. The days leading up to his inauguration on Jan 21 has certainly been extremely dramatic, but is the Trump saga truly well and over? The inauguration is set to be heavily guarded, to guard against unwelcomed riots after the storm of the U.S. Capitol.

In the markets, the euphoria brought by the announcement of the Biden Plan appears to have died down, as traders are questioning how much of this plan can actually materialise, as it needs to gain the bipartisan support of the Senate? Jani Ziedins from Investing.com also opines that there are investors who were caught off-guard over this large amount and are worried about the tax increases.

At this juncture, the managing director of global macro strategy at Medley Global Advisors, Ben Emors believes that the markets need to take a breather or even pull back at this moment. The U.S. markets are off today in conjunction with the Martin Luther King Jr Day in the U.S.

Earnings report from the big banks at the close of last week saw JP Morgan’s fourth-quarter results beat expectations with reports in strong growth in its deposit base and higher investment banking fees. Unfortunately, Citigroup came in lower than expectations, with fourth-quarter revenue of $16.5 billion against a forecast of $16.7 billion. Meanwhile, the U.S. core retail sales contracted 1.4% m-o-m in December, while the producer price index (PPI) grew 0.3% m-o-m in December. For this week’s data, the upcoming U.S. Purchasing Managers’ Index (PMI) data would be closely watched.

FOLLOWME User Sentiment (as of Jan 18, 2021 at 3.30 p.m.)

SPX500

Short – 74.89%

Long – 25.11%

NAS100

Short – 68.42%

Long – 31.58%

US30

Short – 70.31%

Long – 29.69%