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Dow Jones Futures: Market Rally Wobbles As Tilray Leads Climax Stocks; Bull Case For Tesla Stock Retreat

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Dow Jones futures edged higher late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally wobbled Wednesday, reversing lower intraday before closing narrowly mixed.




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The Nasdaq remains somewhat extended, while climax-type stocks Tilray (TLRY), Futu Holdings (FUTU), Digital Turbine (APPS), EXP World Holdings (EXPI) and ExOne (XONE) were big movers Wednesday.

Tesla (TSLA) fell significantly as Bitcoin retreated, but could the electric-vehicle maker be in the early stages of creating a new buying opportunity? As for the Bitcoin price, it fell modestly Wednesday but the power-hungry cryptocurrency is still holding onto much of Monday big gain from Tesla’s Bitcoin buy disclosure.

Meanwhile, Nvidia (NVDA) stood out once again, shrugging off the stock market rally’s intraday retreat. After months of lackluster action and one-day pops, Nvidia stock seems to be making a more meaningful move, clearing a flat base Wednesday.

Uber Technologies (UBER), tax software maker Avalara (AVLR), Spirit Airlines (SAVE), real estate info play Zillow (Z) and pet insurer Trupanion (TRUP) were among the notable earnings reports. Avalara stock might test a cup-base buy point on Thursday.

Why You Should Take Profits In This IBD Stock Of The Day

Big Moves For Wild Stocks

A growing number of stocks are showing climax-type runs. On Wednesday, Tilray stock skyrocketed 51% to 63.91 in massive volume as Reddit investors rush into cannabis stocks. TLRY stock is now 117% above its 10-day moving average. Traditionally 20% was a sign that a stock was likely to have a pullback. In the current market, 40% or more has often been the trigger. But Tilray stock was still rising sharply overnight.

Hong Kong brokerage Futu rallied 7% to 165.24, but came way off an intraday high of 204.25. It’s 36% above its 10-day line. Meanwhile, EXPI stock tumbled 15% to 136.34, nearing its 10-day line intraday. APPS stock sank 3.5% while XONE stock skidded 16.5%.

Tesla stock and Nvidia are on IBD Leaderboard. Nvidia stock is also on SwingTrader.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures climbed about 0.1%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 107.81 million. Covid-19 deaths topped 2.36 million.

Coronavirus cases in the U.S. have hit 27.88 million, with deaths above 482,000. New coronavirus cases and hospitalization levels continue to fall sharply, while deaths also are declining. Vaccinations are continuing, with the likelihood of increased supply and more vaccine options within a few weeks. The big concern is the spread of the more-contagious Covid variant first detected in the U.K.

Stock Market Rally Wednesday

The stock market rally opened higher, fell back and ultimately closed narrowly mixed.

Fed chief Jerome Powell briefly helped buoy stocks Wednesday afternoon as he once again reiterated his support for aggressive monetary policy to support the economy. He says there’s no reason to even think about reining in support until the pandemic is over.

The Dow Jones Industrial Average rose 0.2% in Wednesday’s stock market trading. The S&P 500 index closed fractionally lower. The Nasdaq composite lost 0.25%.

Growth stocks also were mixed.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) fell 0.8%.  The iShares Expanded Tech-Software Sector ETF (IGV) edged down 0.3%. The VanEck Vectors Semiconductor ETF (SMH) rose 0.3%, with Nvidia stock a notable component.

Tesla Stock

Tesla stock fell 5.3% to 804.82, undercutting its 21-day exponential moving average. Tesla is retreating after Monday’s slim gain as the EV maker disclosed it bought $1.5 billion worth of Bitcoin. But a pullback or extended pause could give investors something they haven’t had with Tesla stock in nearly three months: a buying opportunity.

Tesla stock is just 4.9% above its 10-week line. If shares could fall to the 10-week or move sideways and wait for the 10-week to catch up, a rebound would offer a chance to start or add to a TSLA stock position. That also could be the start of a new base, with an additional buying opportunity.

But, all of that is hypothetical. Right now, Tesla stock is not at its 10-week line and is not rebounding.

Tesla missed on fourth-quarter earnings after (slightly) missing its 2020 delivery target. EV competition is soaring while chip shortages are a major wild card for Tesla and the entire auto industry.

Setting aside company challenges, Tesla stock has been on a long, huge run going back to the coronavirus crash or even late 2019. It’s quite possible that TSLA stock will take an extended pause or correction. Much of that will have to do with the market.

Nvidia Stock

Nvidia stock rose 3.5% to 590.57, moving above a 587.76 flat-base buy point and clearing the Sept. 2 all-time high, according to MarketSmith analysis. That follows Monday’s 6.2% jump, clearing a 560.07 early entry that might have been the place to start a position.

The relative strength line for Nvidia stock is starting to pick up, but is well off its early November peak. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.

Stock Market Rally Analysis

Wednesday’s stock market action was reminiscent of Jan. 25, when the Nasdaq opened at record highs, sold off sharply, but rallied for modest gains. That presaged notable selling later in the week. Wednesday’s action was less volatile, but more growth names had losses like Tesla stock than gains like Nvidia.

As then, the Nasdaq has been extended from the 50-day line. After closing 8.1% above its 50-day line on Monday and 7.9% on Tuesday, the Nasdaq is still 7.4% above that key level.

That means the risk of a stock market rally pullback remains elevated, though it doesn’t have to happen right away or be that fierce.

Still, the Nasdaq is extended, a growing number of stocks are climax-type moves, while investors are increasingly leveraged and more and more novices are jumping into GameStop (GME), Bitcoin or other highly speculative investments. There’s definitely froth in the market right now.

Breakout Watch: 5G, IoT Trends Drive This Chip Stock Into Buy Zone

What To Do Now

Investors may want to consider selling into strength, especially with greatly extended stocks. Don’t suffer losing stocks in this environment. Consider getting off margin.

If the stock market rally has a modest pullback in the near future, you’ll want buying power to take advantage of opportunities as strength returns. If the market rally falls into a correction, you’ll be glad you took some profits near the top.

So have a game plan for your holdings. What will you do if your stocks hit certain levels? If you have an exit strategy in place, you’ll be able to deal with market fluctuations without panic selling or freezing.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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US

FBI, Florida authorities pursuing leads as water-treatment hacking investigation continues

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The FBI, Secret Service and Florida law enforcement are searching for one or more suspects they say tried to change the make-up of a local town’s water in a failed attempt to add a potentially caustic chemical by remotely accessing the computer system at a treatment plant that services the entire city, officials said.

A plant operator at the Oldsmar water treatment facility thwarted a hacker’s attempt to elevate the amount of sodium hydroxide in the water to “dangerous levels” on Friday afternoon, Pinellas County Sheriff Bob Gualtieri said during a Monday news conference. Federal partners have since joined forces in probing the case.

HACKER TRIED TO POISON FLORIDA WATER SUPPLY NEAR SUPER BOWL, POLICE SAY

The FBI and Pinellas County Sheriff’s Office had no updates in the case as of Tuesday morning. 

“Right now, we do not have a suspect identified but we do have leads that we’re following,” Gualtieri said Monday. “We don’t know right now whether the breach originated from within the United States or outside the country. We also do not know why the Oldsmar system was targeted and we have no knowledge of any other systems being unlawfully accessed.”

Oldsmar is approximately 15 miles from Tampa and is home to just under 15,000 people.

The hacker first breached the system at approximately 8 a.m. Friday, but only did so momentarily before logging off. A plant operator on duty noticed the “brief” remote access, but wasn’t particularly concerned because supervisors “regularly” access the computers remotely to monitor the system, officials said.

But around 1:30 p.m. that same day, “someone again remotely accessed the computer system, and it showed up on the operator’s screen with a mouse being moved about to open various software functions that control the water being treated,” Gualtieri said.

In this screen shot from a YouTube video posted by the Pinellas County Sheriff’s Office, Pinellas County Sheriff Bob Gualtieri speaks during a news conference as Oldsmar, Fla., Mayor Eric Seidel, left, listens, Monday, Feb. 8, 2021, in Oldsmar, Fla. (Pinellas County Sheriff’s Office via AP)
((Pinellas County Sheriff’s Office via AP))

The hacker took over the system for anywhere from three to five minutes, he said. They opened a function that controls the amount of sodium hydroxide in the water – changing the amount from 100 parts-per-million to 11,100 parts-per-millions, Gualtieri said.

“This is obviously a significant and potentially dangerous increase. Sodium hydroxide, also known as lye, is the main ingredient in liquid drain cleaners,” he continued. “It’s also used to control water acidity and remove metals from drinking water in the water treatment plants.”

The hacker left the system shortly after changing the parts-per-million, and officials say the plant operator “immediately reduced the level back to the appropriate amount.”

JUDGE RULES BROWARD SCHOOL DISTRICT HAD NO RESPONSIBILITY TO WARN STUDENTS ABOUT PARKLAND SCHOOL SHOOTER

The treatment plant provides water directly to Oldsmar’s businesses and residences, officials said, but the affected water would not have made its way to the Oldsmar public until 24 to 36 hours later and was checked multiple times before it did. Oldsmar’s water system is no longer capable to being accessed remotely, Gualtieri said. The public was never in danger.

Sodium hydroxide is often used to manage acid levels in water, and can cause burns or irritation, among other adverse reactions when it reaches a certain level.

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Following Monday’s announcement, U.S. Senator Marco Rubio said he would ask the FBI “to provide all assistance necessary.”

He added: “This should be treated as a matter of national security.”

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World

Chile Police Shooting of Street Juggler Leads to Protests

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SANTIAGO, Chile — Demonstrators angered by the fatal police shooting of a popular street juggler set several public buildings ablaze in southern Chile Friday night, leaving a city of almost 34,000 people practically without public services.

Ten public offices in the city of Panguipulli burned to the ground, including the municipal government building, the post office, the civil registry, a local court and a water management company, the authorities said.

A police officer has been detained in the shooting, the head of the regional homicide unit, Rodrigo Morales, said on Saturday, adding that investigators were gathering video evidence from witnesses. The officer was not publicly identified and did not appear on Saturday at a court hearing, where he was represented by a lawyer.

The shooting took place after the juggler, identified as Francisco Martínez, did not comply with a police officer’s request to provide identification as he performed at a busy intersection in the center of Panguipulli, a popular lakeside community, witnesses said.

An argument followed, during which the officer pulled out his gun and fired at least two shots at Mr. Martínez’s feet, witnesses told reporters. Videos taken by witnesses, which spread widely on social media, show the juggler jumping to avoid the shots then running toward the officer with his props in the air. The officer then shot him in the chest, witnesses said, and he died at the scene.

Police officers described the shooting as an act of self-defense, saying Mr. Martínez was threatening the officer with a machete-like weapon. Witnesses interviewed by news media Friday night said it was a tin sword, a prop for his juggling show.

In interviews with several media outlets, Panguipulli’s mayor, Rodrigo Valdivia, described Mr. Martínez, 25, as a quiet, respectful young man who was well known in town because he had lived on the streets on and off for several years, performing for its many tourists and using the municipal shelter and food kitchen during the winter.

Mr. Valdivia, in a hastily called news conference by the destroyed municipal building, placed responsibility on the police for the shooting, saying the officer and his partner had not followed protocol in a routine ID check. Witnesses also faulted them for not trying to help Mr. Martínez as he lay dying. A nurse standing near the shooting was the first to assist him until an ambulance arrived.

The mayor also blamed the police for the fires, saying they had “entrenched themselves” in their own quarters and left other government buildings unprotected. Since protesters were unable to attack the police station, Mr. Valdivia said, they turned to other government symbols.

Confrontations between protesters and the police were later reported in the capital, Santiago, hundreds of miles north of Panguipulli. People across Santiago expressed anger over the shooting by banging on pots and pans, a ritual for airing public discontent known in Latin America as a cacerolazo, roughly translated as “casseroling.”

The under secretary of the interior, Juan Francisco Galli, traveled to Panguipulli on Saturday. Speaking from the police station, he said that the police use their weapons only as a last resort or in self-defense.

“We regret something like this that is unexpected in a police procedure, that a person dies and the carabineros had to use their weapons,” he said.

Still, some Twitter users posted footage of the blazes in Panguipulli with the hashtag, “He didn’t die, they assassinated him.” Others called for large-scale changes in police training and procedures.

“It happened in broad daylight in a moment of complete peace and without any threat to public safety,” the Chilean writer and literary critic Pedro Gandolfo wrote on Twitter. “A shameful act with a tragic result.”

Police misconduct came under scrutiny in Chile after mass protests in 2019 over economic concerns, which often devolved into violence and were met with police brutality. The Public Prosecutor’s Office received more than 8,000 reports of human rights violations, including hundreds of complaints of permanent eye damage from rubber bullets.

The abuse led to sweeping calls to reform the national police force, which was never significantly overhauled after the dictatorship led by Gen. Augusto Pinochet ended in 1990. Human rights groups and analysts have called for greater oversight of the force’s budget and training, along with other measures that would effectively bring it under civilian control.

Last November, the director of the national police, Gen. Mario Rozas, resigned after officers raided a juvenile center and shot two children in Talcahuano, in southern Chile. A month earlier, an officer pushed a teenager off a bridge during a protest in Santiago, abandoning him seriously wounded in a river bed.

The teenager survived, and in a stunning coincidence, a sister of Mr. Martínez said on Twitter Saturday that her brother, the dead street juggler, was that youth’s uncle.

Pascale Bonnefoy reported from Santiago, Chile, and Mike Ives from Hong Kong.



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US

New Mexico: Fatal shooting of police officer Darian Jarrott leads to a 40-mile chase and shootout

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State Police said Officer Darian Jarrott was killed on Interstate 10 near the town of Akela in Luna County, about 70 miles northwest of El Paso, Texas.

Jarrott, 28, initiated a traffic stop of a white pickup truck while “assisting Homeland Security Investigations,” according to NMSP chief Robert Thornton in a press conference late Thursday.

The driver of the truck, identified by police as Omar Felix Cueva, 39, shot and killed Jarrott before heading east on the interstate toward Las Cruces.

Police said they intercepted Cueva approximately 15 miles from the fatal shooting, where Cueva pulled over and fired at responding officers. Gunfire was exchanged before Cueva fled again.

Law enforcement from multiple departments gave chase, Thornton said, including officers from NMSP, US Border Patrol, Doña Ana County Sheriff’s Office and Las Cruces Police Department.

As Cueva entered Las Cruces, police deployed spike strips to damage the truck’s tires. According to Thornton, a Las Cruces officer also executed a Pursuit Intervention Technique to force the truck sideways.

Video captured shootout

Las Cruces police spokesman Dan Trujillo confirmed the authenticity of amateur video posted online by Austin Contreras, who was working on a construction site roughly 40 miles from the shooting of Jarrott.

The video showed a Las Cruces police cruiser shoving the truck off of the road. After the truck slides to a halt, Cueva is seen emerging from the vehicle and pointing a firearm at police amid sounds of gunfire. One officer is seen crouching behind the police vehicle closest to the truck.

The gunfire continues until police approach the truck as Cueva appears motionless next to the vehicle.

State Police confirmed that Cueva was shot at least once and died on the scene.

One Las Cruces officer was injured in the shooting, but police said the officer was treated at an area hospital and released.

Jarrott began his career as a transportation inspector with the New Mexico Department of Public Safety. He was sworn in as a NMSP officer in July 2015.

Jarrott is survived by three young children, with a fourth expected this year, according to NMSP chief Thornton.

“We’re here to honor Officer Darian Jarrett, for his sacrifice and what he’s done for this community and done for this state,” Thornton said, sharing that one of Jarrott’s captains described the officer as the “nicest guy he ever met, that always had a smile on his face.”

CNN’s Christina Zdanowicz contributed to this report.

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World

Western Australia lockdown: Single Covid case leads to lockdown in Perth metropolitan area and the Peel and South West regions

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The Perth metropolitan area and the Peel and South West regions of the Australian state are now under “full lockdown,” Premier Mark McGowan announced Sunday, with residents only able to leave their homes for essential shopping, medical needs, exercise, and for jobs that cannot be done at home or remotely.

Schools, most businesses, entertainment venues and places of worship are all closed, and restaurants restricted to takeaway only.

“This is a very serious situation and each and every one of us has to do everything we personally can to help stop the spread in the community,” McGowan said.

The Perth metropolitan area and the Peel and South West regions have a combined population of more than 2 million people, with the vast majority living in the state capital Perth.

The drastic measures come after a man in his twenties who worked as a security guard at the Sheraton Four Points, a hotel quarantine facility, tested positive for the coronavirus. Of the four active cases at the hotel while the man was on shift, two were carrying the United Kingdom strain and one the South African strain of the virus, which are believed to be more contagious than other variants.

“We are told the guard was working on the same floor, as a positive UK variant case,” McGowan said. As the man had worked two 12-hour shifts on January 26 and 27, it was possible he had contracted the UK strain, the Premier added, though he said “exactly how the infection was acquired remains under investigation.”

Officials are calling on all people who visited a specified list of venues on a certain date to get tested. All close contacts of the man are required to quarantine for 14 days.

“Western Australians have done so well for so long but this week it is absolutely crucial that we stay home, maintain physical distancing and personal hygiene and get tested if you have symptoms,” McGowan said.

With a population of around 2.76 million, Western Australia has recorded 902 coronavirus cases since the pandemic began, though it currently only has 12 active cases, according to the state’s health department. Over 800 of the state’s confirmed cases are among international travelers and people who arrived by cruise or other vessel, with less than 100 locally-transmitted cases in total.

Australia has recorded a total of 28,811 cases, with 909 deaths, the majority of which occurred in the southeastern states of Victoria and New South Wales. The country has shown success in controlling the coronavirus through stringent lockdowns and tight border controls, with all international visitors required to undergo testing and quarantine.

Last year, the southern state of Victoria was placed under tight lockdown for almost two months in order to contain an outbreak around the city of Melbourne.

But while the broader measures were effective, officials in the state faced criticism for a “hard lockdown” that was enforced against nine public housing towers in Melbourne. Around 3,000 residents of the towers were not given advance warning of the lockdown, which prevented them from leaving their homes for any reason for over five days.

Last month, an official investigation into the restrictions found they “breached human rights,” and were not based on direct health advice.

CNN’s Jessie Yeung and James Griffiths contributed reporting.

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Business

Dow Jones Today Leads Stocks Higher After Jobs, GDP Data; Apple, Tesla Earnings; New Stocks Join GameStop Flash Rally

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Stocks rallied into Thursday’s open after a volatile premarket session, as markets aimed to claw back some of Wednesday’s losses. An improved reading on weekly jobless claims countered a mild miss in fourth-quarter GDP data. Earnings news stirred early action, with Tesla, Apple, Facebook and American Airlines all active. Trade was halted in GameStop and Koss stock, which tripped circuit breakers as recent flash-investing action widened to new stocks. Meanwhile, Walt Disney and Visa sprung to the top of the Dow Jones today.




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The Dow industrials surged 265 points at the starting bell, up 0.8%. The S&P 500 also soared 0.8%, while the Nasdaq opened to a 0.6% gain on the stock market today.

American Airlines (AAL)  dominted the S&P 500, up 28% but after reporting a narrower-than-projected loss, and becoming another apparent entry to the Reddit investing collective. United Airlines (UAL) and Delta Airlines (DAL) each rose 7%. United topped the Nasdaq 100.

Earnings News: American Airlines, Comcast, ServiceNow Rally

Late-Wednesday/early-Thursday earnings news was all over the map: Apple (AAPL), Facebook (FB), ServiceNow and Lam Research (LRCX) earnings all topped views. Tesla (TSLA) stock stumbled 4.4% lower after earnings fell short.

ServiceNow (NOW) rebounded 2.6% after blowing past analyst expectations with a 22% earnings gain and a 31% rise in revenue for its fourth quarter. The stock is looking to snap a four-day decline, and is trading in a six-week flat base with a 566.84 buy point.

Comcast (CMCSA) rallied more than 4% after topping fourth-quarter views and raising its dividend.

Apple, ServiceNow and Tesla stock are IBD Leaderboard names. ServiceNow stock is also an IBD Long-Term Leader. LRCX stock and Teradyne are IBD 50 stocks.

Chico’s, Tootsie Roll Join The GameStop Flash Rally

Small caps accelerated Thursday, with Russell 2000 futures up 1.1%. At the top of the Russell, apparel retail chain Chico’s (CHS) soared 19% in early trade, after rallying 34.8% on Wednesday.

Trade was halted for GameStop (GME) diving %, in a cooled-off version of the volatile trade that has driven shares up 434% so far this week. GameStop appears to be an early indicator of a new stock market wrinkle, one which pits social media investing collectives against institutional short sellers in technical valuation wars.

Other stocks involved include AMC Entertainment (AMC), Express (EXPR) and Koss (KOSS). AMC and Express shed early gains and dived early Thursday. Koss shares soared 134%.

Two other stocks appeared to have made their way onto the flash-mob radar early Thursday.  Candymaker Tootsie Roll Industries (TR) spiked almost 13%. Tootsie Roll spiked 55% in early trade Wednesday, then narrowed its advance to 11%.

Software developer Ebix (EBIX) rallied almost 12% in premarket trade. Shares ended almost 22% higher on Wednesday. Ligand Pharmaceuticals (LGND) jumped 8%.

Dow Jones Today: Apple, McDonald’s, Dow Earnings

At the top of the Dow, Visa (V) popped 1%, Boeing (BA) bounced back 1.5% from its steep drop on Wednesday.

Apple stock dropped 1.6%, to the bottom of the Dow Jones today, after halving its early decline. The company reported late Wednesday that strong sales of iPhones, wearables and services drove fiscal first-quarter sales and earnings well beyond Wall Street targets.

On Friday, Apple stock broke out of a cup-with-handle base at a buy point of 138.89, according to IBD Leaderboard analysis. Shares continue to trade within the 5% chase zone, which extends to 145.83.

McDonald’s (MCD) traded flat after reporting mixed fourth-quarter results, with earnings below expectations and revenue just meeting analyst targets. McDonald’s shares are basing, but must win a long-term struggle to regain support at their 10-week moving average before they can form the right side of the pattern.

Specialty chemicals maker Dow (DOW) scored a strong fiscal first-quarter win, reporting its first quarterly sales gain and announcing it had reduced debt by $2.6 billion for the year. Dow went public as a restructured entity in April 2019.

Visa (V) bats cleanup on the Dow Jones today, with its fiscal first-quarter report due out after the close.

GDP Misses Target, Weekly Jobless Claims Dip

Fourth-quarter GDP rose 4%, the Commerce Department reported Thursday. That was slightly below the 4.1% pace forecast by economists, on the heels of the pandemic-distorted 33.4% rebound in the third quarter. Personal Consumption Expenditures also increased less than expected, up 2.5% vs. the Econoday consensus of 3%, following the 41% bounce in the third quarter.

First-time unemployment claims took a welcome downturn, with the Labor Department reporting a drop to 847,000 in the week ended Jan. 23. Economists had projected a decrease to 875,000, following two disappointing weeks in which first-time unemployment claims rebounded and held above 900,000.

International trade, retail inventories, new home sales and the Kansas City Federal Reserve’s manufacturing index are among the other reports due out on Thursday.

Dow Jones Today: Testing Support

The Dow Jones today opens in a test of support at its 50-day moving average. Wednesday’s powerful pullback deposited the Dow a fraction above that line, below which the index has not closed since the Nov. 4 start of the current stock market rally. The Nasdaq is also testing support, but at its 21-day exponential moving average. The 21-day line also has been a support level for the Nasdaq since the index’s follow-through day in early November.

The S&P 500 dived below its 21-day line, and may be headed for a test of support at its 50-day line. The index finished a bit more than 1% above that level on Wednesday.

For more detailed analysis of the current stock market and its status, study the Big Picture.

Friday marks the final trading day of January. After Wednesday’s pullback,  the Dow industrials were tracking toward a moderate loss for January, down 1% for the month through Thursday. That is identical to its January performance a year ago, which was just beginning to reflect the impact of the gathering coronavirus storm.

Over the past 21 years, the Dow has gained in 10, fallen in 11 Januarys. In those 11 years, it has averaged a January decline of just over 4%, so even though this year is starting on a down note, it is still above average. A down January doesn’t appear to bode either well or ill for the year, with the market up in five, down in six of the 11 years that opened with a soft January.

The Nasdaq, despite Monday’s sharp pullback, remains up 3% for January. The S&P 500 has a 0.1% loss, and the Russell 2000 is up 6.8% for the month.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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