12/19/22 Selloff Slows, Reshuffling Nearly Complete


On Friday, the market’s selloff continued but moderated its pace.

Image from The Happy Saver

All four indexes ended the day lower…

  • Dow Jones -0.8%
  • Nasdaq -1.0%
  • S&P 500 -1.1%
  • Russell 2000 -0.6%

The decline was carry over from the week’s hawkish FOMC meeting and weak retail sales.

Sector Round Up

All 11 sectors ended the day lower.

The worst performers were…

  • Real Estate (XLRE) -3.0%
  • Consumer Discretionary (XLY) -1.9%
  • Utilities (XLU) -1.7%

The smallest losers…

  • Communication (XLC) -0.0%
  • Industrials (XLI) -0.4%
  • Materials (XLB) -0.4%


The long-term chart reveals that the falling resistance overcame the rising support.

SPY Daily Candles – Chart via thinkorswim

However, we’re beginning to suspect the selling is likely nearing its end.

Markets usually rise like an escalator and fall like an elevator. With the VIX holding steady, the conditions aren’t aligning for a larger move down … yet.


It’s the final full week of trading in 2022.

With the triple witching and Fed speak out of the way, the market is in a great position to rally. Historically the second half of December is bullish.

We’re not confident the bottom of this reshuffle is in … We’re waiting for confirmation. But we do believe it’s safe to establish starter positions on the long side.

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*Low Float
^Open Position

*COSM on watch
*BIVI support at $10
*SISI resistance at $3
*ACER support at $3
*GAME support at $1.50
BYSI resistance at $2.50
CABA support at $6, resistance at $7
SMMT resistance at $4
PBYI resistance at $5
FLNC support at $20
^CROX support at $95
^PRQR support at $1.50
IE support at $12
WVE support at $5
TOUR support at $1.60
MBC on watch
resistance at $9
EXAS support at $50
GOTU on watch
TAL support at $7

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