A better understanding of what is going on in the market results from digging deeper than the performance of major indexes. By the end of January all eleven major industry sectors are in a positive trend.
The curtain has dropped on 2022 and what a challenging year it was. The old saw “as January goes so goes the year” was certainly true for 2022.
After a seven week run, the Dow attained its highest level in seven months. The index rallied 20% off the bottom that was set on October 13th and has recovered about 62% of its year-to-date losses.
After four failed rallies this year, the October rally is the fifth attempt to recover from this year’s bear market. We see some encouraging signs, but only time will tell if this October rally holds.
The pressure from inflation and recession fears made June the worst month for the market this year.
The choppy back and forth action continues like a tug of war between buyers and sellers.