Before we start your new (trading\/investing) year on a sour note, allow us to remind you that the major indices have a nine-week winning streak. That streak has produced some massive gains, which led to the happiest end of the old year.<\/p>\n\n\n\n
Briefly, the Nasdaq Composite soared 43.4% in 2023, the S&P 500 surged 24.2%, the Russell 2000 was up 15.1%, the S&P Midcap 400 rose 14.5%, and the Dow Jones Industrial Average gained 13.7%.<\/p>\n\n\n\n
Now, for the sour news: the S&P 500 futures are down 38 points and are trading 0.7% below fair value, the Nasdaq 100 futures are down 182 points and are trading 1.0% below fair value, and the Dow Jones Industrial Average futures are down 237 points and are trading 0.5% below fair value.<\/p>\n\n\n\n
The major indices, therefore, will be starting 2024 on a down note — certainly at the start of today’s trading.<\/p>\n\n\n\n
Notwithstanding the extended winning streak, we are not sure this negative disposition is all that surprising to market participants, who recognized that there was some performance chasing at the end of 2023 and that some profit taking was bound to happen in the wake of a parabolic advance.<\/p>\n\n\n\n
Barclays has helped given market participants a profit taking nudge by downgrading Apple (AAPL)<\/strong> to Underweight from Equal Weight due in part to concerns about weak iPhone sales volumes.<\/p>\n\n\n\n Shares of AAPL are down 2.2% in pre-market trading. In fact, most of the mega-cap stocks are down in pre-market trading and that is taking its toll on the futures for the major indices.<\/p>\n\n\n\n