It was a bearish week for US equity indexes, with net weekly declines ranging from -2.7% (Nasdaq comp'), -2.1% (SPX), -1.9% (R2K), -1.8% (NYSE comp'), -1.7% (Dow), to -0.2% (Trans).
Lets take our regular look at six of the main US indexes
sp'500
Nasdaq comp'
Dow
R2K
NYSE comp'
Trans
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Summary
All six US equity indexes settled net lower for the week.
The Nasdaq comp' lead the way down, whilst the Transports was most resilient.
All six indexes saw bearish engulfing weekly candles.
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Looking ahead
It will be the last five day trading week of the year.
Earnings:
M -
T - GIS, FCEL, NKE, FDX, BB, AIR
W - CCL, RAD, MU
T - KMX, PAYX
F -
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Econ-data/events
M - NAHB home builders index
T - Building permits, housing starts
W - Intl' trade, consumer con', existing home sales, EIA Pet'
T - Weekly jobs, GDP Q3 (print'3), Chicago Fed Nat' Act, Leading indicators
F - Core PCE, Pers' income/spending, Durable goods orders, consumer sent', new home sales
*As Friday is the lead into the three day Christmas break, I'd expect subdued trading conditions on extremely light vol'.
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| Winter solstice is near |
Final note
Tuesday morning, it was all going so well for the equity bulls, with a new (if fractional) multi-month high of 4100.96, but there was a rather powerful reversal. Fed day saw net declines, with Thursday and Friday both broadly lower.
Not only did the SPX settle with a bearish engulfing weekly candle, but so did the other five indexes. Its offers a provisional indication of a major turn, and its arguable that the rally from early October has concluded.
Next week is Christmas week, and that will skew the price action. The bearish engulfing candles are suggestive of a lower low early next week, but an equally probable bounce, with a prime target of upside gap of sp'3958/95. Beyond that... we've a four day week, and I have to wonder how much 'tax loss selling' we might see into year end.
Those who think 2023 will be a better year for the market are set for one hell of a disappointment... never mind the economic and societal outlooks.
You can't complain its 'boring', but then... who doesn't love some market drama?
Christmas/New Year offers >>> https://www.tradingsunset.com
Have
a good weekend
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*the next post on this page will likely appear 5pm EST on Monday.
