News:
The latest inflation data show continued cooling.
- Core PCE rose +3.5% since last year
- That’s in line with projections
- And the lowest reading in more than 2 years
The indexes leaned green with large caps leading the way…
- Dow Jones +1.5%
- Nasdaq -0.2%
- S&P 500 +0.4%
- Russell 2000 +0.3%
Sector Round Up
9 of the 11 sectors closed Thursday’s session higher.
At the top…
- Healthcare (XLV) +1.3%
- Financials (XLF) +1.1%
- Industrials (XLI) +1.1%
Risk-on stocks were the losers…
- Consumer Discretionary (XLY) -0.1%
- Communications (XLC) -0.6%
Technicals:
The Dow Jones closed at a 52-week high on Thursday. It’s also the most overbought it’s been in over a year…
The other major indexes aren’t too far off their 52-week highs.
Historically, the elevated RSI levels have never been maintained. We’re expecting a short-term pullback soon.
Your latest readout…
- The VIX is very low
- RSI levels for the big three indexes remain overbought
- The put-to-call ratio is neutral
Timing:
Today is the first trading day of December.
Here’s what to expect in the month ahead…
- For the main three indexes, December is typically the 3rd best month
- It’s the Russell 2000’s the second-best month
- The average Pre-election year return for the S&P 500 is +2.9%
- For all years, it’s +1.5%
Mark your calendars for these highlights…
- 8th – Jobs report
- 11th – Watch for the January Effect to start
- 12th – CPI inflation data
- 13th – FOMC Rate Decision
- 15th – Triple witching
- 19th – “Free Lunch” picks revealed
- 21th – Final Q3 GDP
- 22nd – PCE inflation data
- 22nd – “Santa Rally” begins
- 25th – Markets closed for Christmas
- 29th – Last day of trading for 2023
Watchlist:
*Low Float
^Open Position
*DRCT support at $10, resistance at $12.50
*GYRE on watch
*SHOT support at $4, resistance at $5
HRTG support at $8
HNST support at $2, resistance at $2.5
Secondary watchlist—float about 100 million
NMRK support at $8
GPS on watch
AFRM on watch
SID support at $3.20