Market Intelligence

Equity Market Insight from Nasdaq MID - December 30, 2016

Friday, December 30, 2016, 11:31 AM, EST

  • NASDAQ Composite -0.6% Dow -0.11% S&P 500 -0.25% Russell 2000 -0.42%
  • NASDAQ Advancers: 716 / Decliners: 1400
  • Today’s Volume (100day avg): -30%

On the last trading day of 2016, US stocks are ticking lower as the likelihood of DOW 20k in 2016 seems bleak. This week the trading volume has been 35% lighter than normal and the lack of conviction buying prevented the DOW from touching the milestone. 9 out of 11 sectors are weaker this morning, with the technology sector the underperformer and 91% of the S&P Info Tech Index in the red.

  • The final trading day has proven to be lackluster as the major indices haven’t posted daily gains since 2012, and this may be an indicator for January. Over the past 3 years, we’ve seen January finish with monthly declines, which a streak the markets have only experienced 2 other times (1970 and 2010).
  • Crude oil had its best year since 2009 with WTI up about 44% and nearly 52% for Brent. Natural Gas had an even better year, gaining over 62% for its best year since 2005.
  • In the overnight session the EURUSD saw a sharp spike in just 30 minutes time from 1.0487 to 1.0653. With seemingly no economic data or news behind the move, one could chalk it up to last minute positioning before the conclusion of 2016. After all the EURUSD has been riding a major support level at 1.0458 for three consecutive weeks and likely frustrating any shorts looking for a convincing breakdown. In theory shorts may have lost their patience and simply decided to cover and live to fight another day. The very important question is whether or not today’s spike is a temporary bounce along key support, or the beginning of a major reversal in trend. The resolution of this binary outcome is likely to have a profound impact on markets at the start of 2017 given the dollar’s status as the world’s reserve currency and its strong correlation to a number of asset classes including commodities and emerging markets.

Nasdaq's Market Intelligence Desk (MID) Team includes:

Michael Sokoll, CFA is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.

Jeffrey LaRocque is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.

Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.

Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.

Annie O'Callaghan is Director on the Market Intelligence Desk (MID) at Nasdaq. Annie has worked for NASDAQ in a variety of roles including support of Nasdaq C-level management in client retention and customer service. Annie also served as a Sales Director in Nasdaq’s Transactions Services business. Prior to joining Nasdaq, Annie worked at AX Trading, managing accounts for its Alternative Trading System and served on Credit Suisse's trading desk as an Electronic & Algorithmic Sales Trading Analyst.

Brian Joyce, CMT has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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