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12/29/2023 |

Market Update Into January 2nd: 2023 Is Over!

2023 has come to a close, and what a wild year it has been! January began with markets putting in higher lows despite fears that a recession was imminent. Energy exploded higher and we saw the collapse of Silicon Valley Bank, which sparked panic throughout the sector. As Powell & Co. continued their fight against inflation, hiking rates an additional four times, small caps got pinched while the Magnificent 7 dominated on the heels of the AI narrative. Bonds dumped, yields soared, crypto rallied, and by year’s end, 2 of the 3 major indexes were trading at or within earshot of new all-time highs. Let’s dig into the charts and see where things ended up.

Yearly Analysis

The SPY ETF closed the year at $475.31 (+24.29%), bringing it within just .1% of its all-time high.  The index managed to find support at the 6-year Simple Moving Average, an important indicator over the past decade and closed inside relative to last year’s candle.

This is a yearly chart of the SPY index.

The QQQ ETF had a monster year, making new all-time highs and closing at $409.52 (+53.79%). The last time this index had this powerful of a move? 2009. 

This is a yearly chart of the QQQ index.
Despite a powerful end-of-year rally on the heels of anticipated rate cuts in 2024, the IWM ETF was the weakest performer of the group, closing at $200.71 (+15.11%). Last year’s lows were swept before reversing, and resistance was found at the 50% Fibonacci retracement from the all-time high made in 2021.

This is a yearly chart of the IWM index.