Updated Models & Spotlight Chart 12/22/2024

Stocks Sell Off But Could See A Brief Bounce

Powell disappointed the market with the Fed now no longer expecting to reach their inflation target. Stocks sold off and fell below the 20- and 50-day moving average on the SPX. The Index finished the week down -2%, with XLK, XLU, and XLF being the best performing sectors, however all sectors were red by Friday. 57% of stocks are now down -10% or more and Risk Appetite is back under 50. Friday saw the Index take a bounce. Looking under the hood, NVDA accounted for 20% of the move in the Index and Apple made up 12%, so almost one-third of the resulting bounce in the S&P 500 was from just these two stocks. This week’s Spotlight Chart looks at one breadth chart that suggests we could see a short-term bounce in equities.

Summary of Models

Index & Sector Performance Summary