US equity markets slumped into the last trading day of the year, volume contracted, all major market sectors lost ground and internals spoke to traders simply wanting to turn the page on a very tough year. The Dow Industrials (-0.66%), S&P 500 (-0.72%) and NASDAQ (-0.82) all suffered under the weight of a familiar foe – crude oil. Stocks sputtered against headwinds from the Fed, Crude and Geopolitical issues. Santa’s technical rally does not feel very good.
Despite the gloomy atmosphere on Wall Street, US equity indices are within striking distance of record highs. The S&P 500 is off 3% from its 52-week high. The Dow Industrials are 4% off their 52-week high and the NASDAQ is only 3% off its 52-week high. We look to close out the year today with the S&P +2.34% on the year, the Dow +1.24% and the NASDAQ +8.36%.
We could either close out the year in negative territory or trade to a record high. We likely do neither unless the bottom truly falls out of crude in which case a negative yearly performance would be a certainty.
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