Both the S&P500 and Nasdaq indices closed last week by recording their highest gains of the month, supported by gains in banking stocks due to their favorable quarterly results. The S&P500 became the winner last week with a 4.2% YTD gain, while the Volatility Index, which determines the level of market participants’ “fear” managed to close at its lowest point over the past year. A survey from Univ. of Michigan also contributed to the positive sentiment by showing an improvement in US consumer sentiment, where the inflation rate started to fall to its lowest level since spring 2021.
Indonesia’s Trade Balance (Dec.) data will receive attention today, where consensus says the surplus fell to USD 4.01 billion from USD 5.16 billion in the previous month. This sentiment will fill the stock market atmosphere today, while the US exchange will have a holiday celebration of Martin Luther King day. Moreover, JCI is still struggling in the Bottoming phase between the Support-Resistance range of: 6550-6660, while MA10 at the level of 6700-6705 is still the closest TARGET to be passed. NHKSI RESEARCH predicts that the market may return to volatile movements to end this Sideways trend. Therefore the Average Up suggestion should be made after the JCI can close above 6660.
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