Equities wobbled on the first trading day of 2022 but managed to hold near the closing highs of 2021. Whatever the reason, it looks like the January effect is in effect this year and will push stocks higher in the first month of the year. The question, however, is what comes next? If the market closes higher in January it is likely to close higher for the year but that doesn?t mean it goes straight up. With Omicron on the rise, inflation running unchecked, and the global supply chain still in trouble there is a real chance for a major stock market correction in the first half of the year.

This week traders will be focused on the monthly NFP report. The consensus is for job gains in the range of 400,000 with a downtick in unemployment and acceleration of wage gains. Regardless of the numbers, the data shows employment conditions are tight and nearing full employment if not already there.