11/18/22 Fed Presidents Warn—More Pain Ahead


Thursday was another down day for the markets. 

We heard from two Fed Presidents on the fight against inflation…

  • St. Louis: Interest rates may need to go to 5-7% (The current rate is about 4%)
  • Kansas City: An economic contraction may be needed
Image from Satoshi Speaks

As much as the bulls tried … the markets flirted with positive territory in the early afternoon … they couldn’t push past the Fed’s comments.

All 4 indexes closed the day modestly lower…

  • Dow Jones -0.0%
  • Nasdaq -0.3%
  • S&P 500 -0.3%
  • Russell 2000 -1.8%

Sector Round Up

Most, 9 of 11, sectors ended the day lower. The winners…

  • Energy (XLE) +0.2%
  • Technology (XLK) +0.1%

At the bottom…

  • Utilities (XLU) -1.8%
  • Consumer Discretionary (XLY) -1.2%
  • Materials (XLB) -1.0%

Notable Names

Two staples of malls across the country had breakout days on Wall Street.

Image from Radio 731

Macy’s (M) popped +15% on strong earnings.

  • The retailer cleared out old inventory
  • Says it’s prepared for the holiday rush
  • The buying added more than $1 billion in market cap

Bath & Body Works (BBWI) led the S&P 500 and soared +25%.

  • It beat Wall Street’s expectations for earnings
  • Raised its guidance for the year
  • Buyers added more than $2 billion in market cap


There are multiple levels of support in play for the SPY right now…

SPY Daily Candles – Chart via thinkorswim

The purple mark is our buy zone. We’ll watch for bottoming action intraday and proper risk-reward for a short-term options trade.

The SPY chart is currently our strongest signal…


Option expiration is today, which could help drive volatility and aid with a big swing in index prices.

Monday will kick off more earnings and a shortened trading week.

Your Thanksgiving week outlook will be out before the market opens on Monday. Have a great weekend!


*Low Float
^Open Position

*NINE support at $10
*CRTD resistance at $1.50
PDSB on watch
CABA on watch
FDMT on watch
IMMR support at $7
NRXP support at $1
^IMVT support at $13
WNC resistance at $25, support at $24
GLYC on watch
MGNX support at $6.50
^CROX support at $80/85, resistance at $100
^RYAM support at $7
PRQR on watch
PRVB support at $8
OII support at $15
IGT support at $24
MGNI support at $10, resistance at $12
ADMA support at $2.85
^ARDX support at $1.60
VVNT support at $9
MNSO support at $9
TME resistance at $6
GILD support at $80, resistance at $84

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