January 19th 2025 – Donald Trump’s upcoming inauguration will be shared with ongoing pessimism across US equity indices, as Trend Intelligence reports negative short-term trends in the Russell 2000 index, the S&P 500 index and the Dow Jones Industrial Average. Trend Intelligence uses a customized collection of trend-following signals, expressed in aggregate as a Trend Score, to demonstrate ongoing price trends across financial market indices and instruments.
Trend’s Analysis (click chart to expand): In our Russell 2000 chart, Trend Intelligence uses its R* Momentum Indicator to demonstrate a negative trending R* area and yellow Signal Line. This is, and has shown over time to be, a negative trend signal.
In addition to our R* indicator, the Russell 2000 index currently trades below Trend’s medium-term (yellow) moving average and the Japanese Cloud indicator, shaded in blue.
These negative signals are also mirrored across the S&P 500 index and the Dow Jones Industrial Average. Trend Intelligence projects continued downward moves across these indices until the trends show signs of reversing.
Downside News: Donald Trump and his advisers are finalising about 100 executive actions that he will sign during his first days in office beginning on Monday. His immediate goals include curbing immigration, increasing tariffs, and deregulating sectors ranging from energy to cryptocurrencies. Actions on trade are also expected early this week, with the possibility of Trump raising tariffs on all imports, reports The Financial Times.
Upside News: Trump is expected to back a new agenda promoting domestic economic growth, increasing the appeal of small-cap stocks such as those within the Russell 2000. The Russell 2000 surged following Trump’s 2016 election as it outperformed the S&P 500 during his first year of office. The focus on small caps comes as investors look for new ‘Trump trades’ that have room to run, according to Reuters News.
Authored by Trend Intelligence, London
