[Platinum Insights] (3.1.23) CHINA RECOVERY/ HOUSING MARKET/ LAYOFFS / SP500

Good morning!  

Stock futures are virtually flat this morning, as investors await fresh US economic data while digesting a slew of earnings reports. 

Robust Chinese manufacturing data signaled a steady recovery in the world’s second-largest economy, lifting the outlook for global growth and risk appetite. Investors now await the ISM manufacturing report for hints about how the economy is faring. Minneapolis FED President Kashkari will speak this morning.  

Mortgage applications in the US were down 5.7% in the week ended February 24th, 2023, marking a third consecutive decline, and pushing the mortgage index close to 28-year lows, data from the Mortgage Bankers Association showed. Applications to refinance a home loan were down 5.5% and those to purchase a home loan fell 5.6%.  

General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits.  Market price action trends are still moving lower.   

The S&P closed down yesterday wicking up to the 4000-level just to find resistance at the 50-day SMA. 

The DJIA closed down 0.71% moving closer to its 200-day SMA which should provide some level of support. 

For these two indexes, all of our oscillators are in the red. The Nasdaq was down .13% on Tuesday and continued trading between the 20 and 200 day moving averages. The was a slight positive cross of the Stochastic, however the MACD and RSI continue to be negative.  

Watch for resistance and support at key moving averages as these will be battle lines between the bulls and bears. Price action trends are still negative. 

Understanding price action trends is essential for swing traders as it helps us identify trends and patterns in the market and make informed decisions about when to enter, exit or stay out of positions.  

Have a great day!  This information is for educational purposes and is not a recommendation to buy or sell a security.