Stock Market Update Wednesday January 3, 2024

Stock Market Update Wednesday January 3, 2024 we have officially ended the upcycle. Yesterday's selloff continued today, with the indices losing about 0.75% through midday. In the afternoon, the market just chopped around and finished on the low, led by the Nasdaq, which lost over 1%. Two negative days to start the new year aren't a guarantee of big trouble, but they certainly are a warning sign.

Away from stocks: WTI remained just north of $72 a barrel, gold closed at $2,042 an ounce, and the VIX closed above 14. The dollar index continued its bounce while fixed income was a bit higher. The metals were thumped, as silver lost 3% compared to 0.75% for gold with the miners weaker as well. Clearly, the recent attempt by the metals complex to break out didn't make substantial progress, and it is currently undergoing another phase of consolidation. The prevailing situation remains that there is no discernible demand from the American public, as evident in the holdings of the GLD. Concurrently, Asia and non-G7 central banks persist in accumulating metals.