Hey Happy New year and welcome to 2017. The markets so far have started positively with ambitions high and market participants once again focused on Dow 20,000. We still have yet to get there but so far things are looking positive.
The S&P 500 (SPY ) started the new year strong, adding 0.77% in its first trading day of 2017. After last week's pullback it is clear that the "buy the dip" traders are back in full force ready to push the SPY to new highs. Technical traders will be using the all time high as resistance but so far we are still a few dollars away.
Oil (USO ) had the wildest first day of 2017 as it started with a nice, higher open but was unable to hold on as the sellers piled in. The USO closed lower by 2.39% with above average volume. It is early to tell if this is going to push oil lower in the short term but after today its clear that there are many that think this will be the case.
Healthcare (XLV ) started the new year strong adding 1.31% in its first day of trade. Overall the healthcare sector still remains in a range with technical traders looking at the $70 number as short term resistance. Some may even look at a move above $70 as a breakout in the short term.
Gold mining stocks (GDX ) shot up 4% in their first day of 2017, continuing on the strength from the last week of 2016. Ever since the $18.58 low the GDX has basically been straight up. Technical traders have already begun to call this a short term bottom and the volume shows their new bullishness. In the short term it is likely that traders will use the $20 number to offer support.