Archive

December 27, 2024

Browsing

Breadth became oversold last week and stocks rebounded this week. Is this a robust rebound or a dead cat bounce? Today’s report will show a key short-term breadth indicator hitting its lowest level in 2024 and becoming oversold. A rebound is in place, but it is still too early to call this a robust rebound and we will show the critical level to watch.

Short-term breadth indicators, such as the percentage of stocks above their 50-day SMAs, are well-suited to identify oversold setups. For example, SPX %Above 50-day SMA fluctuates between 0 and 100%, and becomes oversold with a move below 20%. Such a move signals excessive downside participation that can foreshadow a bounce in SPY. The chart below shows this indicator in the top window and SPY in the lower window. The pink shadings mark oversold periods. There were three in 2022, three in 2023 and just one in 2024, which is a testament to the strong bull market this year.

Oversold is a double-edged sword. While oversold conditions increase the chances for a bounce, an indicator can become oversold and remain oversold. Keep in mind that oversold conditions materialize after strong selling pressure. Stocks were hit hard and often need some time to stabilize before a successful rebound. On the chart above, we can see oversold conditions lasting 4-5 weeks on three occasions. We can also see double dips as the indicator bounced and then dipped back below 20% (pink arrows).

Click here to take a trial and get two bonus reports!

When does an oversold bounce go from a dead cat bounce to a robust rebound? When there is a material increase in upside participation. A move above 50% means the cup is half full for short-term trends. I add a little buffer to this threshold by requiring a move above 60%. This ensures that most stocks are recovering, increasing the chances for a robust rebound. The blue dashed lines on the chart below show these signals.

Signals within bull markets usually work better than signals within bear markets. There were two signals in 2022, which was a bear market period. Price extended higher after these bounces, but the bounces were relatively short-lived as the bear market reasserted control. The bull signal in April 2023 proved timely, as did the bull signal in mid November 2023.

Looking at the current situation, SPX %Above 50-day became oversold with a dip below 20% last week and moved back above 30% this week. Further strength above 60% is needed to show a material increase in upside participation. Given the propensity for double dips, I would also be on guard for another dip below 20%.

We will next look at another short-term breadth indicator for setups and signals. This indicator is more sensitive than SPX %Above 50-day, which can generate timelier signals. This section continues for Chart Trader subscribers. 

Click here to take a trial and get two bonus reports!

//////////////////////////////////////////

Qubits, quantum advantage, gate speed — these terms could one day be as ubiquitous as AI or large language model (LLM). Quantum computing could become the next big thing in the technology space and, as an investor, it’s something you don’t want to ignore. Some companies, Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) to name a few, have already dipped their toes in the quantum computing world.

While it may be many years before quantum computing is adopted into the mainstream, investors should take notice now. Some quantum computing stocks and exchange-traded funds (ETFs) are seeing their prices rise and, at their current price levels, it’s worth paying attention to their charts.

When reviewing the StockCharts Technical Rank (SCTR) Reports Dashboard panel on Thursday, December 26, we can see that at least four quantum computing stocks made it to the Small Cap, Top 10 category. This makes it worth analyzing their charts.

FIGURE 1. QUANTUM COMPUTING STOCKS ARE GETTING STRONG. The Small-Cap, Top 10 displayed four quantum computing stocks with high SCTR scores.Image source: StockCharts.com. For educational purposes.

All four stocks — Quantum Computing (QUBT), Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum Inc. (QBTS) displayed upside momentum in October/November (see chart below). The SCTR score for all four stocks is close to 100, their 21-day exponential moving average (EMA) and 50-day SMA are trending higher, and the 200-day SMA is flat to slightly higher.

FIGURE 2. QUANTUM COMPUTING STOCKS. All four stocks are displaying similar price action. They’re all trending higher, have strong SCTR scores, and display bullish momentum.Image source: StockChartsACP. For educational purposes.

Overall, these stocks look ripe for a bull run and the price levels are attractive. The percentage price oscillator (PPO) in the lower panel shows momentum favors the bulls. Quantum Computing Inc. (QUBT) has pulled back slightly, whereas Rigetti Computing, Inc. (RGTI), Quantum Corp. (QMCO), and D-Wave Quantum, Inc. (QBTS) are at all-time highs.

If you want to gain broader exposure to the quantum computing segment, the Defiance Quantum ETF (QTUM) invests in quantum computing and technology companies. The Symbol Summary page provides more details about the ETF.

The daily chart of QTUM below is similar to the charts of the individual stocks above.

FIGURE 3. DAILY CHART OF DEFIANCE QUANTUM ETF (QTUM). This chart is similar to the individual quantum computing stocks in Fig 2. The advantage of investing in the ETF is it gives you exposure to more than one stock and other cutting-edge technology stocks.Chart source: StockCharts.com. For educational purposes.

The Game Plan

Watch for a pullback toward the 21-day EMA or the most recent low, whichever is higher. A reversal from a support level with follow-through would be an opportune time to enter a long position. It’s worth creating a ChartList of quantum computing stocks so you can revisit these charts frequently.

So at your New Year’s Eve party, if someone mentions the words qubit and gate speed, at least you’ll know they’re talking about quantum computing.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

With the end of 2024 quickly approaching, active investors may be looking to position ahead of 2025.

In January, market watchers are often keen to talk about the January effect, which is the idea that stock markets often rally in the first month of the year. However, it has become less consistent as the years go by, and some consider it a myth at this point.

Find out more about the January effect below, and learn what strategies you can use if you do decide to position ahead of a potential January stock rally.

In this article

    What is the January effect?

    The January effect is a theory based on a pattern that analysts have seen year after year: stocks seem to fare better during January than they do during other months of the year. Generally, small-cap companies are affected the most by the January effect, as large stocks are typically less volatile.

    The first report of the January effect came in 1942 from Sidney Wachtel, an investment banker from Washington, DC.

    Since then, experts have debated possible causes for this phenomenon. Many believe the January effect is triggered by tax-loss selling in the month of December. Tax-loss selling, or tax-loss harvesting as it is sometimes called, is an investment strategy in which individual investors sell stocks at a loss in order to reduce capital gains earned on investments. Because capital losses are tax deductible, they can be used to offset capital gains to reduce an investor’s tax liability on their tax return.

    As an example of tax-loss selling for tax savings, imagine if an investor bought 1,000 shares of a company for US$53 each. They could sell the shares and take a loss of US$3,000 in the event that the shares declined in value to US$50 each. The US$3,000 loss from the sale could then be used to offset gains elsewhere in the investor’s portfolio during that tax year.

    For more information about the strategy, plus the deadlines, check out our guide to tax-loss selling.

    It’s worth noting that tax-loss selling or tax-loss harvesting is a trading strategy that generally involves investments with huge losses, and, because of this, these sales generally focus on a relatively small number of securities within the public markets. However, if a large number of sellers were to execute a sell order in tandem, the price of the security would fall.

    Central to the January effect idea is that once selling season has come to a close, shares that have become largely oversold have an opportunity to bounce back. For example, investors who have sold losing stocks before the end of the year may be driven to repurchase those stocks, although they would have to wait for 30 days to pass, as required by the superficial loss rule.

    Regardless of whether you’re buying or selling, Steve DiGregorio, portfolio manager at Canoe Financial, recommends that you act swiftly and aggressively during this time of year as “liquidity will dry up.” He has earmarked the second and third week of December as the ideal window to sell or buy at a low point. This is ahead of the “Santa Claus rally,” the trading days around the last week of December when stocks tend to rise ahead of a healthier market in January.

    These circumstances have given rise to the alternate notion that stocks get a boost in January because many people receive holiday bonuses in December, providing them with greater investment income. Perhaps it’s one or the other — or perhaps, as with most things, a combination of drivers produces the January effect.

    Is the January effect real?

    While some say that the January effect was once an efficient market hypothesis that is now fading some mutual fund managers, portfolio managers and institutional investors say it isn’t real at all now. Goldman Sachs (NYSE:GS) first heralded the death of the January effect back in 2017, pointing to two decades worth of analysis that showed returns diminishing in the month of January compared to historical figures going back to 1974.

    Those in the “not real” camp claim that while this event may have been tangible back in the 20th century, recent data looks much more random.

    Illustrating this, the graphs below from US Global Investors compare the S&P 500’s (INDEXSP:.INX) average performance by month from the 30 years through 1993 and the 30 years through 2023. While January came in first during the first period with average gains of 1.85 percent, since 1993 it has averaged gains of 0.28 percent, putting it in eighth place.

    Chart via US Global Investors.

    Investopedia’s more recent analysis continues to support the ‘January no-effect’ position. Looking back three decades since the 1993 inception of the SPDR S&P 500 ETF Trust (ARCA:SPY), investment advisor and global market strategist James Chen points out that in the last 31 years ‘there have been 18 winning January months (58%) and 13 losing January months (42%), making the odds of a gain only slightly higher than the flip of a coin.’

    The past two years, the markets have performed strongly in January. January 2023 saw the S&P 500 jump 5.8 percent over the course of the month after falling at the end of December. However, markets fell back down through February and March, making the rally short lived.

    In January 2024, the S&P 500 dipped slightly at the start of the month but ultimately closed January up 2.12 percent higher than its open. Unlike the previous year, the index continued that upward trend through the end of March, at which point it was up 10.73 percent from the beginning of the year.

    How can investors capitalize on the January effect?

    It can be easy to get swept up in hearsay, and with debate still in play, the January effect is a risky business. Use your judgment, or the judgment of a professional, and don’t get sucked into chasing prices. It’s best not to base your investment strategy on the potential of a seasonal market mantra that reliable evidence shows no longer holds true.

    For investors looking to capitalize on a potential rally due to the January effect, here are a few strategies to consider.

    • Invest early — One approach is to invest in Q4 of the calendar year in order to essentially place your bets in anticipation of the January effect. If you’re inclined to participate in tax-loss selling, then you could time your buying period for the end of December and hope to harness both phenomena.
      • Buy dips in stocks you know well and feel confident will return to higher prices — It’s often a good plan to go with what you know, and it’s possible that stocks already in your portfolio will wobble due to tax-loss selling, presenting a lucrative buying opportunity. Just be sure to avoid buying stocks you sold at a capital loss during the prior 30 day period as discussed earlier, as the IRS will view that as a wash.

      Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

      This post appeared first on investingnews.com

      China has launched its first next-generation amphibious assault ship, adding a powerful cutting-edge warship to the country’s fast-expanding navy as it races to rival the military power of the United States.

      The Type 076 amphibious assault ship entered the water on Friday at a launch ceremony at a shipyard in Shanghai, the People’s Liberation Army Navy (PLAN) said in a statement.

      Named Sichuan after a southwestern Chinese province, the independently developed ship is hailed as a “key asset” for advancing the Navy’s transformation and enhancing its long-range operational capabilities, according to the statement.

      China, which already boasts the largest naval force in the world, is building carriers and large warships at a staggering pace as it seeks to project power far beyond its shores and catch up to the military supremacy of the US.

      With a full-load displacement of over 40,000 tons, the Type 076 ranks among the world’s largest amphibious assault ships, featuring a twin-island superstructure and a full-length flight deck, according to the PLAN.

      Most notably, it adopts an electromagnetic catapult system, which allows it to carry fixed-wing aircraft along with helicopters and amphibious equipment usually found on this type of warship, the PLAN added.

      The electromagnetic catapult system will enable the Type 076 to launch larger and heavier aircraft than it could without the technology. That means the aircraft can carry more fuel – expanding their range and that of the ship as a fighting platform – and more bombs or missiles, making the aircraft themselves more lethal.

      Only one other warship in service worldwide, the US Navy’s newest aircraft carrier, the USS Gerald R Ford, employs the electromagnetic catapult system.

      China’s newest aircraft carrier, the Fujian, which is in sea trials and has yet to be commissioned, also has an electromagnetic system.

      The US Navy’s amphibious assault ships feature the F-35B, a short-takeoff and vertical landing variant of the stealth fighter jet used by the US Navy, Marine Corps and Air Force.

      As far as is known the PLA Navy doesn’t have a manned equivalent to the F-35B, so it may deploy the same fixed-wing aircraft as the Fujian.

      But a report earlier this year from the Center for Strategic and International Studies says the Type 076 could be used as a massive drone platform.

      “If it is limited to unmanned systems, the Type 076’s air wing will be highly capable. China boasts an advanced and growing arsenal of UAVs, including the GJ-11 stealth combat drone, the WZ-7 reconnaissance drone, and the CASC Rainbow strike UCAV, among others,” says the August report from the CSIS, which was based on satellite imagery of the ship under construction.

      As for the Type 076’s other capabilities, the CSIS report says it’s expected to have complements of helicopters and amphibious landing craft, the latter capable of deploying more than 1,000 marines.

      The CSIS report says that with the ship’s large size, it should be able to carry more of everything than China’s smaller Type 075 amphibious assault ships, the US Navy’s America-class amphibious assault ships and Japan’s Izumo-class helicopter carriers, which are being converted to carry the F-35B.

      Carl Schuster, a military analyst and former US Navy captain, said size makes a big statement when it comes to the Type 076.

      “That shows a PLA Navy commitment to expeditionary and amphibious warfare and an expanding capability to do so,” he said, adding that it says something about the competition between the world’s two biggest naval powers, China and the United States.

      “It demonstrates China’s growing maritime power projection capability at a time when the US Navy’s commitment and capability for expeditionary, amphibious and humanitarian assistance missions has diminished significantly,” said Schuster, a former a director of operations at the US Pacific Command’s Joint Intelligence Center.

      This post appeared first on cnn.com

      Staff at a hospital in northern Gaza say the building has been surrounded by Israeli forces and they are being ordered to evacuate along with all patients, after reports of a nearby airstrike that the local health ministry said killed about 50 people.

      Israeli forces “are besieging Kamal Adwan Hospital and issuing orders for its evacuation,” hospital director Dr. Hussam Abu Safiya said in a post on social media early on Friday.

      Earlier on Friday, a video shared by nurse Walid Al Budi, who is also inside the hospital, showed a fire burning in the archive department of the hospital. Heavy gunfire can be heard in the background.

      The hospital and its surroundings have come under an onslaught of Israeli attacks in recent months, Dr. Abu Safiya has said. Late on Thursday, about 50 people, including five medical workers, were killed after Israeli strikes nearby, according to the Ministry of Health in Gaza and Dr. Abu Safiya.

      “There are approximately 50 martyrs, including three of our medical staff, under the rubble of a building opposite Kamal Adwan Hospital after an airstrike by the occupying forces,” said Dr. Abu Safiya said.

      Among the three hospital workers killed was paediatrician Dr. Ahmed Samour, who was on duty on Thursday but went to the building opposite the hospital – where he and his family live – when the strike hit, said Dr. Abu Safiya. A lab technician and a maintenance worker were also killed.

      Two paramedics were killed in a strike near the hospital while on their way there, the director said. “Their bodies remain in the street where no one can reach them,” he added.

      “The number of casualties reported in the media does not align with the information held” by the Israeli military, it said.

      Israeli forces launched a renewed aerial and ground incursion in several parts of northern Gaza in early October this year, saying they were targeting a resurgent Hamas presence there. The two-month onslaught has razed streets to carpets of debris, killed entire families, and severely depleted food, water and medical stocks.

      Earlier on Thursday a Palestinian nurse was left fighting for his life with a fractured skull after Israeli forces detonated a robot in front of the hospital, the Ministry of Health in the enclave said.

      Israel says that Hamas operates inside and underneath hospitals, and is using them for military operations, including as command centers, weapons stores and to hide hostages. The Israelis have released footage they say is evidence of those Hamas operations. The videos do not offer definitive proof, and Hamas has denied the claims.

      The World Health Organization (WHO) has previously said that Israeli authorities have repeatedly denied humanitarian access to Kamal Adwan Hospital and just this week said that a request to deploy and international emergency medical teams was denied by Israeli authorities, “despite the need for immediate surgical interventions for injured patients.”

      Israeli organization Physicians for Human Rights has filed an urgent petition with Israel’s Hight Court “demanding an immediate cessation of ongoing attacks on Kamal Adwan Hospital in northern Gaza,” a statement from the organization said on Wednesday.

      The “petition presents grave evidence of the catastrophic impact on the hospital and its staff over the past year,” the statement says.

      “Evacuating Kamal Adwan Hospital would abandon thousands of residents in northern Gaza without access to medical treatment for the sick and injured. Many of the patients currently receiving care cannot be safely evacuated due to constant gunfire in the vicinity and the military’s restrictions on ambulance operations,” the Israeli human rights organization added.

      Ibrahim Dahman contributed to this report

      This post appeared first on cnn.com

      The signs point to a Russian system striking Azerbaijan Airlines flight J2-8243 before it crashed near the city of Aktau, the US official said Thursday.

      This is the first time the US has offered an assessment of Wednesday’s crash, which killed at least 38 of the 67 people aboard the plane.

      If the early indications are ultimately confirmed, it may have been a case of mistaken identity, the US official said, in which poorly trained Russian units have fired negligently against Ukraine’s use of drones.

      Officials from Azerbaijan, Kazakhstan and Russia urged people not to speculate about the crash until investigations have concluded.

      A commission has been set up to investigate the crash, involving representatives from Kazakhstan, Azerbaijan and Russia, Kazakhstan’s Deputy Prime Minister Kanat Bozumbayev said. However, law enforcement agencies of Russia and Azerbaijan will not be allowed to conduct a forensic investigation, he said, according to Kazakh state media.

      Here’s what we know about the crash so far.

      What was the route of the plane?

      The plane was traveling from the Azerbaijani capital Baku to Grozny, the capital city of the southern Russian republic of Chechnya, before it made an emergency landing approximately 3 kilometers (1.8 miles) from Aktau, Azerbaijan Airlines said on Wednesday.

      Russian state media reported that the plane was rerouted due to heavy fog in Grozny.

      According to flight-tracking website Flightradar24, the plane set off on Wednesday at 7:55 a.m. Azerbaijan Standard Time (10:55 p.m. Tuesday ET) and crashed about two-and-a-half hours later.

      Officials did not immediately explain why the plane had crossed the Caspian Sea, when Baku and Grozny are to its west and Aktau is to its east.

      A second black box had been recovered at the crash site, state news agency Kazinform reported Thursday, which authorities hope will provide important information to help investigators determine what happened.

      It will take about two weeks to read the black boxes found at the scene, Bozumbayev said, according to Kazakh state media.

      Kazakhstan’s Minister of Transport Marat Karabayev said Thursday that a Kazakh control center received a signal from Russia around 45 minutes before the plane crashed, saying that the flight was being diverted.

      The Russian dispatcher said that the aircraft was experiencing a failure in its control systems, and that the crew decided to fly to Aktau after receiving reports of bad weather, Karabayev said. The dispatcher later said that an “oxygen tank exploded in the passenger cabin, causing passengers to lose consciousness,” according to Karabayev.

      While the crew made two landing approaches at Aktau airport, the aircraft deviated from its course, and lost communication with dispatchers when it crashed, Karabayev said.

      Flightradar24 said in a social media post that the aircraft was “exposed to GPS jamming and spoofing near Grozny.” GPS jamming can significantly hinder a plane’s ability to navigate and communicate, Flightradar24 said, creating potential safety risks.

      Data and video of the crash also “indicate possible control issues with the aircraft,” Flightradar24 said.

      How many survived the crash?

      At least 38 of the 67 people on board the plane were killed in the crash, Kazakh authorities confirmed, including two pilots and a flight attendant.

      Some 29 survivors, two of whom are children, were pulled from the wreckage, Bozumbayev said.

      Of those on board, 37 of the passengers were Azerbaijan citizens and 16 were from Russia, along with six from Kazakhstan and three from Kyrgyzstan, according to preliminary data from Kazakhstan’s transport ministry.

      On Thursday, Kazakhstan’s Vice Minister of Health Timur Muratov said nine Russian citizens and 14 Azerbaijani citizens had been repatriated to their respective countries, according to Kazakh state media.

      Six patients were still being treated in Aktau, including three Azerbaijani citizens and three Kyrgyz citizens, he said. Four of those six are in the intensive care unit, while the condition of one patient remains extremely serious and unstable, he added.

      What caused the crash?

      Video and images of the plane after it crashed show perforations in its body that look similar to damage from shrapnel or debris. The cause of these holes has not been confirmed.

      Azerbaijan Airlines initially told AZERTAC that the incident was caused by the aircraft colliding with a flock of birds, the outlet reported. Russia’s Federal Air Transport Agency also said the plane crashed after colliding with birds.

      However, Andriy Kovalenko, the head of Ukraine’s Center for Countering Disinformation, part of the National Security and Defense Council of Ukraine, disputed this, claiming on social media that the plane was “shot down by a Russian air defense system.”

      The crash came shortly after Ukrainian drone strikes hit southern Russia. Drone activity has shut airports in the area in the past and the nearest Russian airport on the plane’s flight path was closed on Wednesday morning.

      “Russia should have closed the airspace over Grozny but failed to do so,” Kovalenko said, speculating that authorities will try to cover up the real reason behind the crash, including the holes in the plane, as it would be “inconvenient” to blame Russia.

      Justin Crump, an intelligence, security and defense expert and the CEO of risk advisory company Sibylline, told BBC Radio 4 on Thursday that the plane being fired at by Russia is “the best theory that fits all the available facts that we know of.” Crump added that Russian air defenses were active in Grozny around the time that the plane was damaged.

      “I don’t think this is deliberate at all,” he noted, pointing out that Russia is “very worried” about longer-range active Ukrainian drones that are “very often not getting shot down.”

      Osprey Flight Solutions, a UK-based company that analyzes security risks in the aviation sector, also said in an alert to airlines that the flight “was likely shot down by a Russian military air-defense system,” according to The Wall Street Journal.

      What are authorities saying?

      Kremlin spokesman Dmitry Peskov said on Thursday that it would be wrong to speculate about the cause of the crash before an investigation has been carried out, according to Russian state media RIA Novosti.

      Maulen Ashimbayev, chairman of Kazakhstan’s senate, said Thursday that “the nature of these damages and the causes of the disaster are currently unknown.”

      Brazilian authorities and representatives of the plane’s manufacturer Embraer are expected to arrive in Kazakhstan, according to Azerbaijan’s state news agency, as authorities begin the process of piecing together the events leading up to the crash.

      “We have preserved the wreckage of the plane at the scene of the accident in the same condition as it crashed. The area is fenced off. No one will enter. This will help them investigate the incident as required,” Bozumbayev said, according to Kazakh state media.

      Kazakhstan’s Vice Minister of Transport Talgat Lastayev said experts were due to arrive in the country on Friday and that “this process is underway now – fragments, details are being collected,” according to state news agency Kazinform.

      Bozumbayev said that “even the preliminary cause cannot be determined yet, as specialists are needed for that.”

      “They will conduct the work, and then it will be clear,” Bozumbayev said Thursday.

      Bozumbayev also said they had not received accounts of the accident from Russia or Azerbaijan. “Therefore, it is impossible to refute any version,” he said, according to Kazinform.

      This post appeared first on cnn.com

      German President Frank-Walter Steinmeier on Friday dissolved the country’s lower house of parliament to pave the way for snap elections on February 23 following the collapse of Chancellor Olaf Scholz’s three-way coalition.

      “Especially in difficult times, like now, stability requires a government capable of acting, and reliable majorities in parliament,” which was why early elections were the right way forward for Germany, Steinmeier said in Berlin.

      After the elections, problem-solving must become the core business of politics again, added Steinmeier in a speech.

      The president, whose post has been largely ceremonial in the post-war era, also called for the election campaign to be conducted fairly and transparently.

      “External influence is a danger to democracy, whether it is covert, as was evidently the case recently in the Romanian elections, or open and blatant, as is currently being practiced particularly intensively on (social media) platform X,” he said.

      Scholz, a Social Democrat who will head a caretaker government until a new one can be formed, lost a confidence vote in parliament earlier this month after the departure of Finance Minister Christian Lindner’s Free Democrats left his unwieldy governing coalition without a legislative majority.

      The vote also kicked off election campaigning in earnest, with conservative challenger Friedrich Merz, who surveys suggest is likely to replace Scholz, asserting that the incumbent government had imposed excessive regulations and stifled growth.

      The conservatives hold a comfortable lead of more than 10 points over the SPD in most polls. The far-right Alternative for Germany (AfD) is slightly ahead of Scholz’s party, while the Greens, a coalition party, are in fourth place.

      The mainstream parties have refused to govern with the AfD, but its presence complicates the parliamentary arithmetic, making unwieldy coalitions more likely.

      This post appeared first on cnn.com

      At least 10 people were killed and several wounded when a Nigerian military fighter jet pursuing bandits in two villages mistakenly bombed civilians in the northwestern state of Sokoto on Wednesday, the state governor Ahmed Aliyu said.

      “The military jets were on their mission to eliminate criminal armed groups terrorizing the state, and mistakenly bombed innocent people of this community,” Aliyu said in a statement.

      Aliyu added that the state will collaborate with other authorities to investigate the military operation that killed people in the villages of Gidan Sama and Rintuwa in the Surame local government area.

      The military late on Wednesday said it had struck targets in the vicinity of Gidan Sama and Rumtuwa identified as associated with the Lakurawa group, but did not provide any details on civilians affected.

      Last month, the military warned of a new insurgent group, Lakurawas, infiltrating the country’s northwest region from neighboring Niger and Mali.

      Wednesday’s deadly air assault occurred at around 0500 GMT after two military jets dropped bombs in the villages, the local government chairman said.

      There is widespread insecurity in northwest Nigeria, while a 15-year Islamist insurgency has plagued the northeast of the country and gang and separatist violence affects the southeast.

      This post appeared first on cnn.com

      Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

      November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

      As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

      S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

      S&P 500 Index Chart Analysis

      This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

      On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

      The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

      In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

      The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

      Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

      Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

      This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

      However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

      S&P 500 Index Chart Analysis

      Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

      The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

      Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

      The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

      In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

      The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.