[Platinum Insights] 1.3.23 the first day of 2023 market update!

Good morning and Happy New Year!  

Stock futures price action for to the three major indices were up roughly 0.5% on Tuesday, the first trading day of 2023, as investors continued to assess the outlook for monetary policy and economic growth. 

A dismal 2022 prompted investors to take advantage of lower valuations while rebalancing their portfolios to cope with the current environment of fading Treasury yields. 

Still, volatility is expected to remain elevated amid growing concerns that an aggressive tightening from the Federal Reserve will tip the US economy into a recession later this year. Minutes of the latest Fed policy meeting on Wednesday may provide insight into where the pain threshold lies for Fed officials, who are still somewhat hawkish despite evidence of cooling inflation and sluggish growth.  

This week’s economic news includes:  

Tuesday: S&P Manufacturing PMI 

Wednesday: ISM Manufacturing Index, Job Openings and FOMC meeting minutes 

Thursday: Initial Jobs claims, ADP Employment Report, S&P Service PMI & Trade deficit 

Friday: Non-farm payrolls, Unemployment rate, Labor force participation rate & factory orders.  

We are starting a new year; however, we are just extending the same charts from last year which still provide us with plenty of upside resistance in the SPX and NDX. Only 5 of the 11 S&P segments are trading above their 200-day SMA. 

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