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12/26/23 Welcome Back Santa

News:

On Friday, PCE, the Fed’s preferred inflation measure of inflation, showed continued cooling.

The trend shows a clear peak and decline…

Chart from yahoo! finance

According to the release

  • Month-over-month change -0.1%
  • Year-over-year change +2.6%

These are some of the lowest readings we’ve seen in years.

The indexes absorbed the news and closed mostly higher…

  • Dow Jones -0.1%
  • Nasdaq +0.2%
  • S&P 500 +0.2%
  • Russell 2000 +0.8%

Sector Round Up

10 of the 11 sectors ended Friday in the green.

At the top…

  • Consumer Staples (XLP) +0.7%
  • Materials (XLB) +0.6%
  • Healthcare (XLV) +0.5%

The only loser…

  • Consumer Discretionary (XLY) -0.7%

Technicals: 

The S&P 500’s chart is clearly pointing higher.

And while we’ve warned overbought conditions can hinder higher prices … Overbought conditions alone will not prevent the bull’s advance.

SPY Daily Candles – Chart from thinkorswim

Our outlook remains bullish as we enter day two of the “Santa Rally.” More on that below.

Your latest readout…

Timing:

Friday marked the beginning of the “Santa Rally,” which, according to the Stock Trader’s Almanac, is the final five trading days of the year and the first two of the next.

During these seven days, the S&P 500 averages a return of +1.3%.

Failure to produce a gain during this period acts as an early warning. 

“If Santa Claus should fail to call
Bears may come to Broad and Wall”

Watchlist:

*Low Float
^Open Position

*IMMX support at $7
*ANY resistance at $3
*OPFI support at $4.50
*PLSE support at $11
*SHFS support at $1
CRGX support at $20
FUSN support at $6
CENX support at $12
ALT support at $8, resistance at $10
ARBK support at $2.50
LQDA on watch
GLYC support at $2.20
ABSI support at $3, resistance at $3.50
ASPN support at $14
PRCH support at $2.75
SCS support at $13

Secondary watchlist—float about 100 million

ESPR support at $2
RKT
on watch
MOR
support at $9
NMRK support at $10
BVN on watch

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