Hello Everyone,
Key Observations:
This morning the market followed through on Friday's strong rally, however it stalled exactly at technical resistance at the downtrend line on the SPX 500 that I discussed on the weekend and sold off into the afternoon and the close. What started off as a nice up date ended up down for the major indexes around -0.85%. Inside this channel-like pattern on the SPX there's an open gap from last Friday that could be a magnet. We'll see if the 'bulls' can depend price and ultimately form another higher low inside the channel before attempting another rally to that 4020 gap area. Price going below the bottom of the channel would not be good.
Key news items this week is the ECB on Thursday morning and TSLA on Wed
Earnings season
is starting in a big way this week and focus will begin to shift to those companies - especially the larger cap stocks and the effect that the strong US Dollar may have had on their earnings.
Long Term Bear Market: Don't lose slight of the bigger picture
To put things in perspective, the Chinese real estate market is the biggest single asset class in the world with an estimated market value of roughly $55 trillion (as per Dec 2021). Larger than the US stock market.
ECB Bond Tool Seen Having No Limits as Steeper Rate Hikes Loom
have a good evening,
Matt
