On Friday, the market’s selloff continued but moderated its pace.
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.
However, we’re beginning to suspect the selling is likely nearing its end.
- The VIX failed to yield to the bears
- RSI levels are all neutral and nearing oversold
- The Put-to-Call Ratio is oversold, just as it has been for 7 of the past 9 trading days.
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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*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
MOMO resistance at $9
EXAS support at $50
GOTU on watch
TAL support at $7