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Stocks started the New Year, Tuesday, January 3, with early morning gains which then faded. At the close, the S&P 500 was down 0.4%, the NASDAQ Composite down 0.8%, and the Dow Jones Industrial Average down 0.03%. Energy stocks got hit Tuesday. WTI crude oil slid 4.1%, to $76.93 a barrel, on worries that Chinese demand could falter if Covid-19 cases continue to surge in the world's second-largest economy. The Energy exchange-traded fund XLE dropped 3.5% on the day.
 

Equities

The Dow Jones Industrial Average and Europe continue Bullish status; China turned Bullish; S&P 500, R2000, NASDAQ Comp, NASDAQ 100, and US Treasury Bond continue Bearish. Weekly Market Breadth indicators continue Bearish for NASDAQ 100, S&P 500, and NASDAQ Composite.

Sector Trends
Bull Alert: Financials; Bullish but signs of weakening: Industrials, Staples, Utilities, Health Care, And Gold Miners. Bear Alert: Energy, Materials; Bearish: Real Estate, Communication Services, Tech, and Consumer Discretionary.                            

Fixed Income
The 10-year US Treasury Yield fell today, closing at 3.679% down from 3.826% last week. Despite weakening long-term trend remains up.

The 2-year US Treasury Yield closed today at 4.40% up slightly from 4.32% last week. The 2-year yield's rate of rise is slowing. The 10-2 year Yield Curve remains inverted, with the closing spread widening slightly to -0.61.

Currencies
The Australian Dollar is Bull alert, the Yen is Bullish; the Bullish Euro pulled back, the British Pound is Bullish but weakening, all vs. US dollar.

The US Dollar Index continues Bearish, closing at 104.31 but the downtrend appears weakening.

Gold's trend continues Bullish; Base Metals and Copper continue Bullish; West Texas Light Crude continues Bearish downtrend.