12/22/22 Recession Cancelled? Consumer Confidence Jumps


Markets opened on a positive note on Wednesday. 30 mins into the trading session, the markets got a surprise…

Consumer Confidence rose “sharply.” The latest survey reversed “consecutive declines in October and November to reach its highest level since April 2022.”

Chart from The Conference Board

Markets surged higher following the release and closed near the day’s highs. All four indexes posted solid gains…

  • Dow Jones +1.6%
  • Nasdaq +1.5%
  • S&P 500 +1.5%
  • Russell 2000 +1.7%

The bull’s victory was decisive this time … 74% of stocks advanced, while 22% declined.

Sector Round Up

All 11 sectors posted gains on Wednesday.

At the top…

  • Energy (XLE) +1.9%
  • Industrials (XLI) +1.9%
  • Technology (XLK) +1.7%

At the bottom…

  • Materials (XLB) +0.9%
  • Consumer Staples (XLP) +1.0%
  • Real Estate (XLRE) +1.0%


While the market is showing clear signs of a reversal, there are still challenges ahead for the bulls.

SPY Daily Candles – Chart via thinkorswim

The falling resistance level will likely contend any significant rally in the coming weeks.

Investors are already betting against the rally in strong numbers too.

But the markets are not showing signs of fear…

  • The VIX is very low, relatively speaking

A final note…


2023 is now 6 trading days away.

The “Santa Rally” begins tomorrow.

We’ll also have eyes on the University of Michigan’s Consumer Sentiment survey. The report is due out Friday morning.


*Low Float
^Open Position

*APCX support at $1.50
*ACER support at $3.50
*EVER on watch
*MDGL on watch
*NINE support at $11
CABA support at $7
SMMT resistance at $4.50
TERN support at $8
PBYI resistance at $5
YQ support at $2
PLX support at $1.25
ETNB support at $10
CLDX support at $40, resistance at $45
ZYME support at $8
VRNA on watch
^CROX support at $90
^PRQR support at $1.60
VKTX on watch
WVE support at $5, resistance at $6.50
HUYA support at $3.50
TOUR support at $1.75
CPRX support at $18

Secondary watchlist, float 100 million & up…

MOMO support at $8, resistance at $9
ARDX support at $2
GOTU on watch
TGB support at $1.45
TAL on watch

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