{"id":58568,"date":"2021-12-31T19:15:39","date_gmt":"2022-01-01T03:15:39","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=58568"},"modified":"2021-12-31T21:20:02","modified_gmt":"2022-01-01T05:20:02","slug":"one-day-santa-rally-ended-2021-on-strong-note-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/12\/31\/one-day-santa-rally-ended-2021-on-strong-note-the-market-breadth\/","title":{"rendered":"A One Day Santa Rally Ended 2021 On Strong Note – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The rebound from oversold conditions leading into Christmas<\/a> provided just enough fuel for a one day Santa Claus rally. After the week started with a rush for Santa, the excitement fizzled like kids opening their last Christmas gifts. Still, the rally was enough and ended 2021 on a strong note. The S&P 500 (SPY) held onto its latest breakout. The NASDAQ (COMPQX) held support at its 50-day moving average (DMA). The iShares Russell 2000 ETF (IWM) stuck by its overhead 200DMA resistance. The gains for the year for all three indices were quite strong.<\/p>\n\n\n\n

The Stock Market Indices<\/strong><\/h2>\n\n\n\n

The S&P 500 (SPY) shot out of the one day oversold period like an express train to the North Pole. The scramble to buy was quite the contrast to the variety of worries and negative catalysts that escorted the stock market toward and to oversold trading conditions twice in December. Even after the rally fizzled out, the S&P 500 remained tall. The index ended 2021 just a hair off its all-time high and adorned with a 27% gain over the close of 2020.<\/p>\n\n\n\n

\"The<\/a>
The S&P 500<\/a> (SPY) enjoyed a remarkable year of relatively consistent support from its 50DMA on the way to a 27% gain for the year.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The NASDAQ (COMPQX) confirmed its 50DMA breakout. However, the tech-laden index fell far short of its all-time high set in November. The NASDAQ also reversed its entire gain from Monday and ended the week hovering just above 50DMA support. Still, a 21.4% gain ended 2021 with the NASDAQ in a strong winner’s column. <\/p>\n\n\n\n

\"The<\/a>
The <\/b>NASDAQ<\/a> (COMPQX)<\/b> only came close to its 200DMA once on its way to a 21.4% gain for the year.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The iShares Russell 2000 ETF (IWM) chopped and churned the most last week. IWM gave up almost all its Monday gains on the very next day. The index of small caps proceeded to swing around in a tight range right under its 200DMA resistance.<\/p>\n\n\n\n

All of IWM’s gains for the year came in the first 5 weeks of trading. IWM flailed around in a trading range from there with one false breakout in November. IWM ended 2021 with a 13% gain.<\/p>\n\n\n\n

\"\"\/<\/a>
The iShares Russell 2000 ETF<\/a> (IWM) failed to break away from its near year-long trading range and finished with a 13% gain for the year.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n