Weekly Market Review 201221

Although stocks gave up some of their gains in Friday's session before the holiday long weekend, the S&P 500 had finally founded a little ground after three consecutive weekly losses. In the meantime, housing data buoy investors confidence as both existing home sales (4.62M vs. 4.60M est.) and new home sales (343K vs. 335K est.) outpaced analysts' forecast. Bond price volatility stayed quiet and directionless ahead of a busy economic calendar week, where the Treasury curve finished almost unchanged after reaching its all time low on the 10yr. Economic fundamentals are on the spotlight looking forward this week, where the U.S. first quarter GDP, nonfarm payroll, and various critical economic indicators will be releasing.

Technical Highlights:
• The rally on stocks appeared weakness as momentum decelerated; 1289/1350 continued to be the key support/resistance level for the SPX this week.
• The NYSE composite is facing heavy resistance from its 200 day moving average, which is a critical bull/bear technical watch for the blue chips.
• Offensive stocks outperformed the S&P, the "market top" group (materials, industrials, and energy) strengthened.
• Treasury showed little activates across the curve this past week; bonds remain bullish as the "golden cross" on yields fell to reverse the trend.

read more at...
http://plus.alpbeta.com/report/201221.pdf