It was a mixed week for US equity indexes, with net weekly changes ranging from +1.0% (R2K), +0.7% (Nasdaq comp'), +0.2% (SPX), +0.01% (Dow), -0.3% (NYSE comp'), to -1.6% (Trans). Near term outlook threatens some cooling.
Lets take our regular look at six of the main US indexes (monthly candle charts)
sp'500
Nasdaq comp'
Dow
R2K
NYSE comp'
Trans
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Summary
Three US equity indexes settled net higher for the week, one was flat, with two net lower.
The R2K was significantly higher, the Dow was flat, whilst the Transports was sig' lower.
More broadly, all six US equity indexes are trading above their respective monthly 10MA. Four indexes have positive monthly momentum, the two exceptions being the R2K and Transports.
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Looking ahead
It will be the last busy week of the year, with CPI/PPI, an FOMC, and a handful of notable earnings.
Earnings:
M - ORCL, CASY
T - JCI
W - ABM, ADBE, NDSN
T - JBL, COST, LEN, SCHL
F - DRI
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Econ-data/events
M - -
T - CPI, US T-budget
W - PPI, EIA Pet'
*FOMC announcement 2pm. Press conf' 2.30pm. Other than Powell wishing everyone a 'happy holiday, and good wishes for 2024', I expect a 'do nothing' fed.
T - Weekly jobs, retail sales, Phil' Fed manu', business invent'
F - Empire state manu', indust' prod', *QUAD-OPEX*
As Friday is quadruple witching option expiration, I'd expect considerable chop, on extremely high vol'.
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| Winter solstice is just twelve days away |
Final note
A new cycle high of sp'4609 on Friday, helped make for a sixth consecutive net weekly gain. The short and mid term trends are unquestionably bullish.
Price action is tired though, and it'd not be surprising to see 2-4% of cooling before the Christmas break. Once we're past there, the setup will favour the bulls into mid January.
One thing should be clear, 2024 is going to be more wild than 2023, both economically, and on a geo-political basis. Not everyone is going to make it, not least those heavily indebted, or using margin to buy hysteria-wrapped and garbage tier stocks.
If anything, lets hope Santa delivers some popcorn and good drinks this Christmas, as we're going to need plenty across 2024.
Christmas subscription offers > https://www.tradingsunset.com
Have
a good weekend... if you deserve it.
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*the next post on this page will likely appear 4.20pm EST on Monday.
