A man who killed 35 people by plowing his car into a crowd at a sports center in southern China has been sentenced to death, state media reported on Friday.
Fan Weiqiu, 62, rammed his car into people exercising at the outdoor venue in the city of Zhuhai last month, in the country’s deadliest known act of violence against the public in a decade.
China has been gripped by a surge of sudden episodes of violence targeting random members of the public – including children – in recent months as economic growth stutters, unnerving a public long accustomed to low violent crime rates and ubiquitous surveillance.
Fan was sentenced at the Zhuhai Intermediate People’s Court on Friday after pleading guilty earlier in the day, state broadcaster CCTV reported.
Shortly before 8 p.m. on November 11, Fan drove his car into the crowd, in a rage caused by his failed marriage and what he saw as an unfair divorce settlement, the court concluded.
As his small off-road vehicle mowed across the grounds of Zhuhai Sports Center, he hit dozens of people exercising around a track.
After the attack, officers found Fan in the car trying to injure himself with a knife and took him to hospital, police said in their previous statement.
“The court finds that defendant Fan Weiqiu’s criminal behavior was despicable; the nature of the crime particularly was brutal; the way the crime was committed was particularly cruel,” the court said, as quoted by CCTV.
The attack had the highest such death toll has seen since 2014, when a string of attacks rocked the far western region of Xinjiang.
The hit-and-run prompted Chinese leader Xi Jinping, who described the attack as “extremely vicious,” to call for severe punishment, CCTV previously reported.
Fan’s sentencing came just days after another Chinese court handed down a suspended death sentence to a man who rammed his car into crowds outside a primary school in central Hunan province injuring 30 people, including 18 students.
Since taking power in 2012, Xi has launched a sweeping campaign against graft and disloyalty, taking down corrupt officials as well as political rivals at an unprecedented speed and scale as he consolidated control over the party and the military.
Now well into his third term, the supreme leader has turned his relentless campaign into a permanent and institutionalized feature of his open-ended rule.
And increasingly, some of the most fearsome tools he has wielded to keep officials in line are being used against a much broader section of society, from private entrepreneurs to school and hospital administrators – regardless of whether they are members of the 99-million-strong party.
The expanded detention regime, named “liuzhi,” or “retention in custody,” comes with facilities with padded surfaces and round-the-clock guards in every cell, where detainees can be held for up to six months without ever seeing a lawyer or family members.
It’s an extension of a system long used by the party to exert control and instill fear among its members.
New detention regime
For decades, the party’s disciplinary arm, the Central Commission for Discipline Inspection (CCDI), had run a secretive, extralegal detention system to interrogate Communist Party cadres suspected of corruption and other misdeeds. Officials under investigation were disappeared into party compounds, hotels or other covert locations for months at a time, with no access to legal counsel or family visits.
In 2018, amid growing criticism over widespread abuse, torture and forced confession, Xi scrapped the controversial practice known as “shuanggui,”or “double designation” –a nod to the party’s power to summon members for investigation at a designated time and place.
But the Chinese leader did not abolish secret detention, which had been a potent weapon in his war on corruption and dissent. Instead, it was codified by law, given a new name and placed under the purview of a powerful new state agency, the National Supervisory Commission (NSC).
Founded in 2018 as part of the constitutional revision that cleared the way for Xi to rule for life, the new agency consolidated the government’s anti-graft forces and merged them with the CCDI. The two agencies work hand in glove and share the same offices, same personnel and even the same website – an arrangement that expands the remit of the party’s internal graft watchdog to the entire public sector.
The new liuzhi detention regime has kept many features of its predecessor, including the power to hold suspects incommunicado in custody and a lack of independent oversight.
The lawyer, who requested anonymity due to fears of retribution from the government, said many of their clients had detailed abuse, threats and forced confessions while in liuzhi custody.
“Most of them would succumb to the pressure and agony. Those who resisted until the end were a tiny minority,” the lawyer said.
Liuzhi casts a much wider dragnet than shuanggui, targeting not only party members, but anyone who exercises “public power” – from officials and civil servants to managers of public schools, hospitals, sports organizations, cultural institutions and state-owned companies. It can also detain individuals deemed to be implicated in a graft case, such as businessmen suspected of paying bribes to an official under investigation.
High-profile liuzhi detainees include Bao Fan, a billionaire investment banker, and Li Tie, a former English Premier League soccer star and coach of China’s national men’s team. (Li was sentenced to 20 years in prison for corruption this month.) At least 127 senior executives of publicly listed firms – many of them private businesses – have been taken into liuzhi custody, with three quarters of detentions taking place in the past two years alone, according to company announcements.
State media says the expanded jurisdiction fills longstanding loopholes in the party’s anti-corruption fight and enables graft busters to go after everyday abuse of power endemic in the country’s behemoth public sector, from bribes and kickbacks in hospitals to misappropriation of school funds.
Critics say it is another example of the party’s ever-tightening grip over the state and all aspects of society under Xi, China’s most powerful and authoritarian leader in decades.
Some of the detention centers built or expanded in China since 2018
The real number is likely much higher, as many local governments don’t publish tender notices online, or delete them after the bidding is finished.
The spate of construction appears to be largely driven by a surge in demand for detention cells due to the NSC’s new broad remit, as well as efforts to make liuzhi facilities more standardized and regulated than the hotels and villas often used for shuanggui, the documents revealed.
Soft padded rooms
An analysis of the tender notices shows a lull in construction during the pandemic, but the number of projects picked up again in 2023 and 2024. More detention centers have been built, and more funds have been allocated, in provinces and regions with a higher percentage of ethnic minorities.
Shizuishan, a city in the northwestern region of Ningxia – the official heartland of the Hui Muslim minority – was approved to build a 77,000 square feet liuzhi site with a budget of 20 million yuan ($2.8 million) in 2018, according to a government notice.
The document provides a rare glimpse into what the interior looks like. All detention cells, interrogation rooms, and the infirmary must have fully padded walls, cabinets, tables, chairs and beds, with all edges rounded for safety.
No exposed electrical wiring or power sockets are allowed, and floors must be treated with anti-slip surfaces. All ceiling-mounted installations, including surveillance cameras, lights, fans and loudspeakers, must incorporate “anti-hanging designs.” In the bathrooms, washbasins and stainless-steel toilets must be fully padded too, while showerheads and surveillance cameras must be mounted on the ceiling, according to the notice.
These maximized safety features are designed to prevent detainees from taking their own lives – an issue that had long dogged shuanggui detentions.
But Shizuishan’s liuzhi center turned out to be too small for the influx of detainees. In June, the city published another notice seeking to expand the facility to address the problem of “insufficient facilities and equipment.” The project includes a new building for interrogation, a new staff canteen and reconfiguration of existing buildings to create more detention cells.
The party never published official figures on shuanggui detention, and the numbers on liuzhi are nearly as elusive. In 2023, the only year national data was available, 26,000 people were detained by the NSC and its local branches across the country.
Provincial data, although patchy, has pointed to a sharp increase in the number of detentions. In the northern region of Inner Mongolia, 17 times more people were placed under liuzhi custody in 2018 than those subject to shuanggui in 2017, according to the region’s supervisory commission.
Dingxi, one of the poorest cities in the northwestern province of Gansu, said its 305-million-yuan ($42 million) detention center would be built following requirements specified by the CCDI and NSC to achieve the “standardized, law-based, and professional operations” of the liuzhi facility.
The massive complex, featuring 542 rooms, will include 32 detention cells, accommodation for investigators and guards to live on site, as well as other facilities to meet their daily needs, according to a 2024 budget document of the city’s anti-graft agency.
Life under liuzhi
Chinese officials and state media have hailed the transition from shuanggui to liuzhi as a crucial step toward what they describe as “the rule of law in anti-corruption work.”
The shuanggui system had long been criticized for using threats, intense pressure or even torture to secure confessions. A 2016 report by Human Rights Watch documented 11 deaths in shuanggui custody from 2010 to 2015, and numerous instances of abuse and torture.
Unlike shuanggui, which had no legal basis, liuzhi is inscribed in the national supervision law – introduced in 2018 to regulate the NSC.
The law bans investigators from collecting evidence through illegal means such as threats and deception; it prohibits insulting, scolding, beating, abusing and any form of corporal punishment of those under investigation. The law also requires interrogations to be recorded on video.
But legal experts say the legislation only wraps a thin veil of legality around a detention regime that operates outside the judicial system, lacks external oversight and remains inherently prone to abuse.
“In the past, it was extra-legal. Now, some critics call it ‘legally illegal,’” said a Chinese legal scholar who has studied the NSC. They spoke on condition of anonymity, citing fears of government retribution.
China’s opaque court system, which answers to the Communist Party, already boasts a conviction rate above 99%.
But unlike criminal arrests, liuzhi takes place outsidethe judicial process and does not allow access to legal representation, raising concerns for potential abuse of power, said a second Chinese scholar who also requested anonymity.
In September, Zhou Tianyong, a top economist and former professor at the elite Central Party School, where the Communist Party trains its senior officials, warned that local authorities had been using corruption probes to extort money from private entrepreneurs to fill their strained coffers.
In a viral article that was later censored, Zhou called for an end to the practice by local anti-graft agencies of detaining businessmen on suspected or trumped-up bribery charges and forcing them to pay for their release. “If (this trend) spreads, it will undoubtedly lead to another disaster for the national economy,” Zhou wrote.
In recent years, allegations of abuse and forced confessions have emerged in multiple liuzhi cases publicized online.
Among them is Chen Jianjun, an architect-turned-local official who claimed he was deceived and forced into making false confessions of bribe-taking while detained under liuzhi in 2022 in the northwestern city of Xianyang.
During his six months of detention, the 57-year-old was watched by rotating pairs of guards around the clock and forced to sit upright for 18 hours a day without moving or speaking, with any slightest bending of his back immediately met with reprimands from the guards, according to a written account of his experience posted on social platform WeChat.
Chen was only allowed to sleep for less than six hours a day under bright lights that were never switched off; in bed, he must lie on his back and keep his hands above the blanket in sight of the guards, he wrote.
“The prolonged torment left me physically and mentally exhausted, with blurred consciousness, a mental breakdown, chaotic thoughts and hallucinations,” Chen wrote, adding that by the time he emerged from liuzhi, he had lost 15 kilograms.
In 2023, Chen was sentenced to six years in prison for accepting bribes of 2.5 million yuan ($340,000). He appealed and is waiting for a ruling, according to Caixin, a business magazine known for its investigative reporting.
The Chinese lawyer who represented officials in court after they were released from liuzhi custody said it was common for detainees to be forced to sit in one position for up to 18 hours a day.
“They had to sit continuously without moving, causing severe pressure ulcers on their buttocks. Some medicine would be applied, but they were made to continue sitting, leading to further deterioration. It was extremely torturous,” they said.
Some clients were also given very little food until they confessed, causing malnutrition and a host of other health problems, the lawyer said. “Many people eventually developed auditory hallucinations and felt like they were losing their minds,” they said.
According to the lawyer, another tactic commonly used by investigators was to detain an official and their spouse simultaneously, even if the spouse did not hold public office.
It’s a two-pronged approach: investigators can try to gather clues about the official’s alleged transgression from the spouse; while the spouse can be held hostage to pressure the official to confess, the lawyer explained.
In some cases, investigators had also threatened to detain officials’ children for interrogation, the lawyer added.
A draft amendment to the national supervision law, which is under review by China’s top legislature, appears to nod to concerns of potential abuse. It added a clause that requires investigators to carry out investigations in a “lawful, civilized and standardized manner.”
But the draft proposal has ignored calls to allow access to legal counsel during liuzhi detention. Instead, it has suggested extending the maximum detention period from six months to eight months, if the suspect is likely to be sentenced to a prison term of 10 years or longer; the entire liuzhi period can be reset and restarted if new offenses are discovered, meaning a maximum of 16 months of custody, according to the proposal.
The draft amendment has sparked heated debate and criticism from Chinese lawyers and legal scholars, who say the powers granted to investigators during liuzhi have far outweighed the protection of detainees’ rights.
“Prolonged detention and interrogation present an extreme test that surpasses the physical and mental limits of the detainee,” Dacheng, a Beijing-based law firm, said in an article on its social media account.
“Under such extreme conditions, where both the body and the mind are pushed to their limits, it becomes increasingly difficult to tell whether the detainee is giving an ‘honest confession’ based on facts or opting for ‘full cooperation’ by compromising the truth under unbearable pressure.”
This may be one of those years Britain’s royal family will not want to dwell on. Few of the Windsor clan would have anticipated the challenges they’d have to face in the infancy of King Charles III’s reign.
It was perhaps best summed up by his heir apparent, Prince William, who candidly categorized 2024 as “brutal” and probably “the hardest year in my life.”
For Russell Myers, the royal editor of Britain’s The Mirror newspaper, the past 12 months have been astonishing. “It’s been a simply unprecedented time for both the individuals who have had separate health ailments, but also, in a wider sense, (a) really testing time for other members of the family.”
Myers recalled the hurricane of unfounded, and at times ludicrous, conspiracy theories that swirled around Catherine earlier this year. “In all my years in the job, I’ve never known a period of hysteria like it and a lot of people forgot that at the center was a young mother who had undergone a serious operation and needed time to recover,” he continued.
The King and his daughter-in-law’s diagnoses stunned royal-watchers, but their disclosures also heralded a change in the royal modus operandi.
“We saw a real openness with the royal family that we haven’t seen quite so much of before,” said Lizzie Robinson, a royal journalist for Britain’s ITV News, recalling the Princess of Wales’ video messages and the monarch’s disclosure that he had initially gone to hospital for a corrective procedure for an enlarged prostate.
“He wanted to help raise awareness and was keen to encourage other men who might be experiencing symptoms to get checked. After he made his announcement, there was a significant rise in the searches on the NHS website,” Robinson added. “I think that showed the royal family were maybe taking a more modern approach in the way they deal with some things.”
Amid the health issues, Prince William also took a step back from his royal duties to support his family, leaving the 1,000-year-old institution without three of its most senior members.
“Camilla really kept that royal show on the road for quite a few months,” Robinson said, before adding that she was, of course, supported by other Windsors, including Princess Anne and the Duke and Duchess of Edinburgh.
Myers points out that Queen Camilla “wouldn’t have expected to be front and center of the institution at large.”
He added: “Camilla’s transition over the last couple of decades has been extraordinary because at one point in the not too distant history she was public enemy number one. There were questions over whether she would be accepted by the British public and beyond and now she is this pillar of the institution.”
William returned to public engagements in April and has since deftly juggled his work and personal life. As he picked up extra childcare duties behind the scenes while Kate continued to recuperate, he also twice stepped up to represent the King at state events in France. The pressure on the heir would have been considerable, both personally and professionally.
When he stood shoulder to shoulder with heads of state at the D-Day commemorations in June and again at the reopening of Notre Dame cathedral in December, we got a glimpse of how the monarchy may feel when he eventually takes the crown. He would have been aware of the optics of those moments and considered how he wanted to play them.
Ahead of William’s Notre Dame appearance, a royal source pointed to the “evolution of the Prince of Wales as a global statesman” in the past two years and how this was a further example of him “stepping up onto the world stage to represent the United Kingdom.”
Any heir to a throne must always have their destiny in the back of their minds. But with his father’s reduced travel schedule, William has been getting some practice sooner than he might have imagined.
When they met in Paris, US President-elect Donald Trump said William was “doing a fantastic job,” illustrating the soft power the British royal family still wields.
Challenges for the Windsors weren’t confined to Britain. Across the Atlantic, Prince Harry and Meghan, Duchess of Sussex embarked on several trips abroad to Nigeria, Canada and Colombia to promote their charity work, and projects such as Invictus and online child safety. While they weren’t official visits on behalf of the UK government, there was an air of traditional royal tour about them, complete with stately welcomes and meetings with high-profile figures.
The visits illustrated how the couple can operate outside the royal infrastructure and promote their causes and initiatives, while simultaneously demonstrating that they can still draw crowds.
The Sussexes have also continued to push forward with their business endeavors. In March, Meghan returned to Instagram after a six-year hiatus to tease a new lifestyle venture, “American Riviera Orchard.” She then sent out what appeared to be a sample of what was to come – jars of strawberry jam – to friends and influencers, but movement on the project at least in public has stalled in the months since.
Their latest Netflix offering, which gave viewers an inside look at the world of professional polo, received mixed reviews when it was released in December. Meanwhile, Netflix’s mid-year data dump of streaming figures for the second half of 2023 revealed that their “Heart of Invictus” series, which premiered on the platform last August, racked up just 300,000 views, according to The Hollywood Reporter.
“The next phase was starting all these businesses and things,” he explained. “Sympathy can turn to skepticism very quickly and people can think that you’re doing a little too much to cash in on these family problems.”
Back in England, after being relegated to the shadows following earlier scandals, Prince Andrew had almost managed a quiet 2024. That is, until a High Court hearing revealed his close relationship with an alleged Chinese spy. Yang Tengbo was the co-founder of Pitch@Palace China, an initiative for entrepreneurs Andrew set up a decade ago.
The hearing upheld an earlier decision to bar Yang from the UK, but disclosed that he had been authorized to act on the duke’s behalf during business meetings with potential Chinese investors in the UK, and had been invited to Andrew’s 60th birthday party in 2020. The duke’s office subsequently told British media that the royal had “ceased all contact” when concerns had been raised about Yang. But the developments once again called into question his judgement and the company he has chosen to keep.
He said it was too early to understand the scandal’s effect on the monarchy but suggested it could be a wake-up call for the duke “that he would be much better completely withdrawing from public life, and any sense that he may have had that there was a route back for him is completely extinguished now.”
By year’s end, King Charles and Queen Camilla had resumed overseas visits, carrying out a 10-day trip to Australia and Samoa. Robinson, who was one of the many royal reporters on the tour, described a “real warmth and appreciation” that they’d made the long-haul journey while Charles was still undergoing cancer treatment.
“Going into 2025 we already know that the King is working on a full overseas tour program as long as there’s doctors’ approval, that Prince William has spoken about how hopefully he and Catherine will have some more trips lined up,” she said. “They will be hoping that things can return to some sort of normal again.”
Afghan Taliban forces targeted “several points” in neighboring Pakistan, Afghanistan’s defense ministry said on Saturday, days after Pakistani aircraft carried out aerial bombardment inside Afghanistan.
The statement from the Defense Ministry did not specify Pakistan but said the strikes were conducted “beyond the ‘hypothetical line’” – an expression used by Afghan authorities to refer to a border with Pakistan that they have long disputed.
“Several points beyond the hypothetical line, serving as centers and hideouts for malicious elements and their supporters who organized and coordinated attacks in Afghanistan, were targeted in retaliation from the southeastern direction of the country,” the ministry said.
Asked whether the statement referred to Pakistan, ministry spokesman Enayatullah Khowarazmi said: “We do not consider it to be the territory of Pakistan, therefore, we cannot confirm the territory, but it was on the other side of the hypothetical line.”
Afghanistan has for decades rejected the border, known as the Durand Line, drawn by British colonial authorities in the 19th century through the mountainous and often lawless tribal belt between what is now Afghanistan and Pakistan.
No details of casualties or specific areas targeted were provided. The Pakistani military’s public relations wing and a spokesperson for the Ministry of Foreign Affairs did not immediately respond to requests for comment.
Afghan authorities warned on Wednesday they would retaliate after the Pakistani bombardment, which they said had killed civilians. Islamabad said it had targeted hideouts of Islamist militants along the border.
The neighbors have a strained relationship, with Pakistan saying that several militant attacks that have occurred in its country have been launched from Afghan soil – a charge the Afghan Taliban denies.
Israeli forces arrested a hospital director and dozens of staff after raiding the last major functioning health facility in northern Gaza, the ministry of health in the territory says.
The World Health Organization said the raid on Kamal Adwan – which has come under Israeli assault for months – put the facility out of service, warning on Friday that some patients , including those on ventilators, remained inside.
On Friday, Dr. Safiya said in a post on social media that Israeli forces were besieging the facility, “and issuing orders for its evacuation.” Multiple nurses have said staff and patients were then ordered to leave the hospital and gather outside.
After hours of being held, they were forced to move to the nearby Indonesian Hospital, the staff said, a facility the WHO has described as “destroyed and nonfunctional.”
The Israel Defense Forces said earlier that it had begun “targeted operations” around the hospital based on intelligence “regarding the presence of terrorist infrastructure and operatives” there, but did not offer any proof of the claim.
“Unfortunately, this water was mixed with chlorine and other substances, resulting in burns on their hands and faces,” Al Batsh said, adding one patient died in the fire.
An audio message from staff at Kamal Adwan said that surgical departments, laboratory, maintenance, and emergency units have been completely burned.
The 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 international emergency medical teams was denied by Israeli authorities, “despite the need for immediate surgical interventions for injured patients.”
In the video, a man with special needs is trying to explain what happened to him, making signs of gunfire and gestures indicating that he has been beaten on his arms and face. He arrived alone and his bare feet are covered in dust.
The patient’s name is Khaled Hazzaa, according to another man stood nearby who says he is Hazzaa’s nephew. The man says they had not seen each other for 82 days until Al Shifa Hospital called him. Hazzaa was being treated at Kamal Adwan Hospital, the man says.
Khader Al Za’anoun of Wafa, the official Palestinian news agency, contributed to this report.
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.
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).
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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.
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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.
