12/20/22 Market Shows No Fear


Monday opened green but closed red. It was the fourth consecutive day of losses. And the first Down Friday / Down Monday since October.

All four indexes posted moderate losses…

  • Dow Jones -0.5%
  • Nasdaq -1.5%
  • S&P 500 -0.9%
  • Russell 2000 -1.4%

There was little new information to price in. Headlines continue to blame recession fears and the Fed.

Sector Round Up

All 11 sectors ended the day lower.

The worst performers were…

  • Communication (XLC) -2.3%
  • Consumer Discretionary (XLY) -1.6%
  • Technology (XLK) -1.3%

The smallest losers…

  • Energy (XLE) -0.0%
  • Consumer Staples (XLP) -0.1%
  • Financials (XLF) -0.3%


The Nasdaq may be putting in a triple bottom. We’re monitoring the rising support on its chart for signs of a turn.

QQQ Daily Candles – Chart via thinkorswim

Our top signals haven’t changed…

Notably, the put-to-call ratio swung wildly on Monday from overbought conditions in the morning to oversold in the afternoon. Last time this happened … October 10

Our last Down Friday / Down Monday was October 7-10.

The market bottomed on October 13.


2023 is now 8 trading days away.

The Santa Clause Rally, during which the S&P 500 typically returns 1.3% over the last 5 trading days of the year and 2 trading days of next year, will act as our first indicator for 2023.

As the Almanac Trader put it, “If Santa Claus should fail to call, Bears may come to Broad and Wall.”


*Low Float
^Open Position

*BIVI support at $10
*APCX support at $1.20
*SISI resistance at $3
*GAME support at $1.25
MDGL support at $8
BYSI resistance at $2.40
CABA support at $6, resistance at $7
SMMT resistance at $4.50
TERN support at $8
PBYI resistance at $5
FLNC support at $20
YQ support at $2
CLDX support at $40
^CROX support at $90
^PRQR support at $1.50
IE support at $13
VKTX on watch
WVE support at $5
TOUR support at $1.75
MBC support at $8.25
MOMO support at $8
EXAS support at $50
GOTU on watch
TAL on watch

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