[Platinum Insights] 12.19.22 the trend of the market based on charts!

Good Morning & Happy Holidays!  

Premarket price action tied to the Dow rose 0.2% on Monday, while those linked to the S&P 500 and Nasdaq were up 0.3% and 0.4%, respectively, as investors took advantage of lower valuations following a Fed-induced selloff last week. 

The Federal Reserve reaffirmed its commitment to raise interest rates and keep them higher to rein on still stubbornly high inflation, putting the world’s largest economy at risk of a sharp recession. The European Central Bank and the Bank of England struck similar tones, dashing any hopes for a policy pivot soon. 

Meanwhile, China’s top leaders have pledged to revive consumption and support the private sector to boost the economy next year. Fed-Ex and Nike will release earnings on Tuesday.   

From a technical standpoint, The S&P 500 – SPX has had 4 down days in a row. We have a Gap-Down from about 3960 to about 3995 that has yet to be filled so its possible to see a retracement to that level at some point. We would also find resistance at the 9, 20 and 200 day SMA. There is also a possibility price action could continue its slide down to a level just above 3780.  

The NASDAQ – NDX had a full candle close under the 50 day SMA. Look for that to be the first line of resistance followed by the 9 and 20 if price action tries to move higher.  

The DJIA – DJI is still trading above its 200 day SMA but we are still watching the oscillators which have rolled over. Expect upward price resistance at the downward sloping 9 and 20 day SMAs.  

Since the markets produced a double top we continue our negative price action trend. After 4 days of negative closes, we can expect a possible retracement, however be aware of all the resistance levels above. 

Have a Great Day!  This information is being provided for educational purposes only and is not a recommendation to buy or sell a security.