Good morning traders!
The S&P 500 ($SPY) is trading below Monday’s close. Let’s get into it…
Last week, Christine Lagarde, President of the European Central Bank confessed she is one of the biggest hawks around. In a statement, she said interest rates are going up and staying there. Given the complexities of raising interest rates in Europe, where rising borrowing costs affect some economies far harder than others, her resolve was firm. As for right now, it’s still too early to give up on the possibility of a Santa rally. However, if you need to sell stocks to realize losses for tax reasons, you have approximately a week before the end of the year. That deadline is most likely making issues worse.
Stocks may recoup some of the losses from the previous week, but the macro outlook for the remainder of the year remains bleak. We advise everyone to size down, and trade with caution as the market could go either direction very quickly; especially as political, geo-political, and inflation uncertainty is present.
In the news, Julianne Smith, the United States’ ambassador for NATO, stated that Russia and China are “sharing a toolkit” to undermine NATO states. “Those two are increasingly sharing a toolkit that should concern the NATO alliance,” Smith said “There’s just no question that China and Russia are both working to divide the transatlantic partners. And we are now very aware, we all have a deeper appreciation of those efforts and are intent on addressing them.”
Potential Intraday Resistance Levels:
50D SMA (1hr): $381.55
12/19/22 Market Close: $380.02
Potential Intraday Support Levels:
Extended Hours Low: $376.02
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
Housing Starts and Permits 8:30am ET – High Volatility Expected
Redbook Sales 8:55am ET
API Crude Oil Report 4:30pm ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.