Stock Market Outlook For 2nd Half of 2022 & 2023we could see another rebound in 2nd half of this year due to easing inflation rate.
july is uncertain.
Spxbuy
SPX - "bull market back if breaks this level."SPX if break the confluence of trendline resistance and horizontal resistance at 4600. Bull market back. If breaks 4100 level bearish momentum gains priority.
SPX-BUY strategyThe market feels overdone, and we are way basing into the BB bottom right now. The BB width is also quite wide and this suggests we should see a correction somewhat. I feel we can correct back towards 3,950-4,000 .
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US Market Technicals Ahead (29 Mar – 2 Apr 2021)Focus on the upcoming week will be on US employment report that due to release on Good Day (a market holiday), with forecast slated on signs of a further gradual job recovery. Market will also be watching on President Joe Biden’s infrastructure plan, which he is expected to unveil in Pittsburgh on Wednesday, along with OPEC+ meeting which could offer guidance into the coalition’s production plan from May.
Continued push and pull of the market rotation that favors cyclicals over growth and tech stocks is expected to continue into the next quarter.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) maintained its resilience by closing +1.67% (+65.3 points) for the week. It is important to note that $SPX averted from further losses on Thursday, after a technical rebound at 3,860 level which was highlighted last week.
With $SPX remaining above its 20DMA & 50DMA and at a higher low trend formation, there are substantial traction for the index to breach 4,000 all time high level this week. The immediate support to watch for $SPX remains at 3,860 level, a break on the pivoted level from recent Thursday. Resistance to watch for $SPX is at 3,989 level, a continuation to break its all time high level.
US Employment Report (March)
The March jobs report is scheduled for a morning when the stock market is closed for the Good Friday holiday, but bonds will trade half a day, ending at noon. The labor market is expected to show signs of recovery following the approval of President Biden’s relief package and as several states ease coronavirus-induced restrictions amid the rapid pace of vaccination.
Infrastructure Plan
President Joe Biden is expected to unveil details of his $3 trillion to $4 trillion infrastructure plan on Wednesday in Pittsburgh, but strategists say it is too soon to say what form the plan could take or how large it will be in its final form.
The plan is expected to span multiple years, and Democrats are expected to seek tax hikes to pay for it.
Rotation
The rotation into cyclicals and value stocks is expected to continue into the next quarter. For the first quarter so far, energy and financials were the best performers, up about 33% and 16.5% respectively. Tech was up 1.7%, but it remains a better performer than utilities and consumer staples.
US Market Technicals Ahead (15 Mar – 19 Mar 2021)We have officially mark the start of daylight saving time (DST), as North America have moved ahead an hour on Sunday 14th March. US and Canadian markets will trade one hour earlier than usual in Asia time.
The Federal Reserve’s highly anticipated monetary policy meeting will be the big deal for global financial markets in the week ahead. Last week, Fed Chairman Jerome Powell said that the economic reopening could boost inflation temporarily and that the US economy was going to start to see stronger employment in the next few months. Still, the Fed chief also said that the central bank was still a long way from its inflation and employment targets. Investors would be eager to hear if the central bank will take any measures to bring bond yields down, which saw the 10-year yield surge above 1.60% to the highest in a year on Friday.
Besides the Fed meeting, U.S. retail sales data will be in focus for further indications on the strength of the reopening rebound.
Meanwhile, in earnings, there are just a few big names set to report their latest financial results, with global economic bellwether FedEx ($FDX) and athletic apparel giant Nike ($NKE) likely to draw the most attention.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) continued its recovery to end up +2.63% (+100.8 points) for the week, gaining traction to recapture its all time high at 3,965 points, a mere 20 points (0.5%) away.
At the current junction, $SPX have managed to trade back above its 20DMA & 50DDMA, along with a negation of its short term trendline resistance highlighted last week. Immediate resistance for $SPX is currently at 3,965, a continuation to break its all time high level.
Federal Reserve Policy Meeting
The Federal Reserve is expected to leave its benchmark interest rate unchanged at the conclusion of its two-day policy meeting at 2:00PM ET (18:00 GMT) on Wednesday, keeping it in a range between 0.0%-0.25%.
Perhaps of greater importance, Fed Chair Jerome Powell will hold what will be a closely watched press conference 30 minutes after the release of the Fed’s statement.
Investors will be looking for clear signs that Powell and fellow policymakers are concerned about the current spike in yields amid mounting inflation expectations.
U.S. Retail Sales
The Commerce Department will release data on retail sales for February on Tuesday at 8:30AM ET (12:30 GMT).
The consensus forecast is that the report will show retail sales fell 0.6% last month, following January’s surge of 5.3%.
Excluding the automobile sector, core retail sales are expected to drop 0.1%, after climbing 5.9% in the preceding month.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Consumer spending accounts for as much as 70% of U.S. economic growth.
FedEx, Nike Earnings
The fourth-quarter earnings season has all but wound down, however results are expected from a number of big names in the week ahead, with most of the focus falling on FedEx, and Nike, which both report Thursday after the close.
Other notable companies reporting this week include Dollar General ($DG), Crowdstrike ($CRWD), Coupa Software ($COUP), PagerDuty ($PD), and Sundial Growers ($SNDL).
US Market Technicals Ahead (01 Mar – 05 Mar 2021)Even after President Biden’s $1.9 trillion pandemic aid bill narrowly passed the House in the early hours of Saturday, the shakeup in stocks prompted by the rapid run up in Treasury yields looks set to continue to be a major focus for markets in the coming week. Investors will be focusing on Friday’s employment report, which is expected to show that virus restrictions kept a lid on jobs growth in February. Appearances by several Federal Reserve speakers, including Chairman Jerome Powell will also be closely watched. Meanwhile, earnings season is wrapping up, but retailers will still be reporting, with Target ($TGT), Kohl’s ($KSS) and Nordstrom ($JWN) due to publish figures on Tuesday, followed by Costco ($COST) on Thursday.
Here’s what you need to know to start your week.
S&P500 (US Market)
The S&P 500 Index ($SPX) remains in red for the week, furthering its correction by -2.37%. The selling of individual equities was most felt on two separate occasion; on Monday 22nd February ($SPX: -0.56%), and Thursday 25th February ($SPX: -2.60%).
It is important to note there were several technical structure being broken on the highlighted Thursday itself;
Price Action breakdown on 20DMA (3rd Attempt in last 3 months)
Price Action breakdown on 50DMA (2nd Attempt in last 2 months)
Price Action breakdown on 4 months Trend Channel (2nd Attempt in last 4 months)
Breakdown of immediate support at 3,870 with volume exceeding past 50 trading sessions average by +87%.
Increasing implied volatility on the week of selloff.
On the flip side, every attempted breakdown on the confluence of above technical structure is accompanied with an immediate, and substantial recovery on $SPX (ie. 1st February to 5th February $SPX: +5.35%).
At the current junction, $SPX remains bullish at a higher low. Further signs of weakness in this correction will require $SPX to breach its next classical support level at 3,700, for the first significant lower low to be established since September 2020. It remains wise to capitalize on the potential investment opportunities with a prudent risk level.
Immediate resistance for $SPX is currently at 3,830, a support turned resistance level.
Tug of war between stocks, rising bond yields
The shift into energy, financial and other stocks set to benefit from the economic reopening has accelerated, while rapidly climbing Treasury yields are pressuring tech stocks that have led market gains for years.
Tech stocks are particularly sensitive to rising yields because their value rests heavily on future earnings, which are discounted more deeply when interest rates go up.
A dovish sounding Fed together with expectations for more stimulus have propelled yields higher and fueled concerns about inflation and the two-track market looks set to continue, at least in the short team.
February jobs report
With President Joe Biden’s $1.9 trillion coronavirus relief package advancing to the Senate Friday’s nonfarm payrolls report for February will show how the recovery in the labor market is faring.
Government data late last week showed that initial jobless claims unexpectedly declined to their lowest in three months, indicating that the slowing infection rate is allowing the labor market to gain some traction. Retail sales also rebounded in January.
Economists are expecting the U.S. economy to have created 165,000 new jobs in February, after January’s 49,000 increase. But the winter storms that swept across the South may complicate the picture.
Powell speech
With the rapid climb in Treasury yields roiling the stock market investors may be hoping for Fed officials to address the selloff in Treasuries.
Fed Chair Jerome Powell is set to speak about the economy at an online event hosted by the Wall Street Journal on Thursday. So far there has been little sign of anxiety among Fed officials about higher Treasury yields.
Last week Powell said the move higher was the result of a stronger economy but added that the rate of economic recovery has slowed in recent months and reiterated that monetary policy will remain easy for some time to come.
US Market Technicals Ahead (22 Feb – 26 Feb 2021)The US is releasing the second estimate of Q4 GDP, alongside durable goods orders, personal income and outlays, and PCE price index. Elsewhere, the Eurozone business survey and the UK jobs report will be keenly watched Now, with rising yields, the chances the Fed will begin lowering its asset purchases, reducing liquidity, are starting to increase. Investors are beginning to worry that rising yields could provide competition to stocks.
Here’s what you need to know to start your week.
S&P500 (US Market)
The S&P 500 Index ($SPX) was the only major US benchmark that closed in the red, (-0.2%) on Friday. It erased the earlier gain at the start of February with -0.94% for the week. The imminent correction is a technical play out of the Bearish Divergence pattern that was highlighted over the last two weeks.
With current implied volatility of $SPX remaining low in the week of correction, the technical structure of $SPX uptrend channel remains intact. Any signs of further weakness in this rally will require the first break of immediate classical support at 3,870.
US Market Technicals Ahead (1 Feb – 5 Feb 2021)A big week for earnings, including reports from Amazon ($AMZN), Alphabet ($GOOGL), Exxon Mobil ($XOM) and Pfizer ($PFE). Stimulus negotiations in Washington and the first jobs report of 2021 (January) will all be major events to watch in the coming week, but they are likely to be overshadowed by the standoff between retail investors and Wall Street hedge funds. Investors will be watching closely to see if the short squeezes driven by retail investors continue in what could be a bumpy week for stocks.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) ended the January flat, with a weekly loss of -3.47%. The correction have breached the multi-month long Trend Channel, along with 20SMA support convincingly, with the month’s highest transactional volume witnessed on 28th January. Additionally 50SMA was also breached on Friday session. This pullback affirms the technical Bearish Divergence between price rally and volume decline highlighted last week.
At the current junction, $SPX remains trading above 3,660 level, a classical support level established at the start of 2021. The breach of this support will see S&P500 trades at a cumulative loss for 2021.
1. The big squeeze
Last week saw retail investors using Robinhood and other apps drive a frenzied rally in shares of GameStop ($GME), AMC ($AMC) and other companies championed on social media platforms including Reddit’s WallStreetBets, that had been heavily shorted by hedge funds.
U.S. stock indexes suffered their biggest weekly fall since late October as the short squeezes saw hedge funds sell stocks to cover their losses, despite positive earnings results from market heavyweights like Apple ($AAPL) and Microsoft ($MSFT).
Some market watchers are concerned that the wild rally may be a fresh sign of overexuberance that could foreshadow volatility for the broader stock market, while others believe it is more of a sideshow.
2. Earnings
With quarterly earnings season in full swing, market participants are looking at whether companies can justify high valuations.
“By and large the surprises have been positive, even more so than typical and by and large companies are showing positive operating leverage where they are able to grow earnings a little bit faster than they are able to grow revenue,” said Ellen Hazen, portfolio manager at F.L.Putnam Investment Management in Wellesley, Massachusetts.
Tech giants Alphabet ($GOOGL) and Amazon ($AMZN) are both due to report after the market close on Tuesday, followed by Qualcomm ($QCOM), Snap ($SNAP) and Pinterest ($PINS) later in the week.
Some big names in the closely watched healthcare sector are also to report, including Pfizer ($PFE), GlaxoSmithKline ($GSK), AbbVie ($ABBV), Biogen ($BIIB), Gilead Sciences ($GILD), Merck ($MRK) and Bristol-Myers Squibb ($BMY).
3. January jobs report
The January nonfarm payrolls report will give markets the first look at the health of the labor market inherited by U.S. President Joe Biden.
The report is expected to show a slight uptick in hiring after the economy shed 140,000 jobs in December (mostly from restaurants and bars), but more substantial improvements are unlikely to come until there is a broader re-opening of the economy. The unemployment rate is expected to remain unchanged at 6.7% – almost twice the level that it was just prior to the pandemic.
Federal Reserve Chairman Jerome Powell last week said that the economic recovery hinges on the progress of the vaccination rollout. “There’s nothing more important to the economy than people getting vaccinated,” Powell said.
US Market Technicals Ahead (25 Jan – 29 Jan 2021)As we enter into the last market week of January, investors will have lots to focus on in the week ahead with a series of major U.S. companies including Apple ($AAPL), Microsoft ($MSFT), Facebook ($FB), and Tesla ($TSLA) all reporting earnings. The Federal Reserve is to meet, and markets will get their first look at fresh GDP growth figures in the final quarter of pandemic ravaged 2020. Elsewhere, the IMF is set to release its World Economic Outlook and growth figures from Germany, Mexico and Hong Kong will also be in the spotlight.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) recovered from the earlier week of losses, posting a weekly gain of +2.23%. The rebound have reaffirm the significance of 20DMA supporting the rally since 4th November 2020. The significance of 20DMA towards $SPX daily current price action is also observed in the various rebound highlighted in the chart (arrow), particularly thrice in December 2020 and once in January 2021.
As $SPX continues to creep up with a higher high at every bi-weekly swing, it is observed that volume is diminishing at every of this top establishment – essentially plotting out a technical bearish divergence between price rally with volume decline.
At the current junction, the $SPX remains firmly within the congested 3 months trend channel. The immediate support to watch for any further weaknesses is at 3,660 level. This level would see $SPX breaking down the highlighted trend channel convincingly, along with the first break of a minor classical support established on the opening week of 2021.
1. Earnings heat up
After leading markets higher for most of 2020, tech stocks took a backseat late last year amid a rotation into value stocks which were boosted by hopes for the economic recovery promised by vaccines.
That shift has stalled in recent days as investors weighed lackluster outlooks from big banks and a blockbuster quarterly report from Netflix ($NFLX) that saw shares climb 17%.
Microsoft ($MSFT) reports after the close on Tuesday, followed by Apple ($AAPL), Facebook ($FB) and Tesla ($TSLA), which recently joined the S&P 500, a day later.
The results could push the combined market cap of the FAANGs – Facebook, Amazon ($AMZN), Apple, Netflix and Google-parent Alphabet ($GOOGL)- back above their all-time peak of $6.16 trillion.
2. Fed meeting
Fed policymakers will hold their first meeting since Democrats last week took control of the Senate, which has increased the likelihood that new President Joe Biden’s proposed $1.9 trillion stimulus package could be passed.
The Fed is not expected to make any policy changes at the conclusion of its two-day policy meeting on Wednesday and is likely to reiterate that the economy is still far from its goals of full employment and 2% inflation.
There is some speculation among investors that increased government spending to boost the recovery could prompt the Fed to begin tapering its massive bond-buying program as soon as the end of this year.
But Fed Chair Jerome Powell said earlier this month that “now is not the time to be talking about exit.”
3. U.S. GDP data
Market participants will get their first look at how the U.S. economy performed in the fourth quarter from Thursday’s figures on gross domestic product after already weaker consumer spending numbers and falling employment in December.
After a record 33.4% annualized rate of growth in the third quarter, economists are forecasting growth of 4.0% in the final three months of the year. The economy is expected to have contracted by 3.5% for the full year.
The economic calendar also features data on durable goods orders on Wednesday, initial jobless claims numbers on Thursday and personal income and spending data on Friday.
US Market Technicals Ahead (19 Jan – 22 Jan 2021)The holiday shortened week will see Joe Biden inauguration as the 46th president of the United States on Wednesday with investors waiting to see how his plans for stimulus relief and tackling the pandemic will roll out. Janet Yellen’s confirmation hearing as the U.S.’s first female Treasury secretary is set to take place on Tuesday.
The fourth-quarter earnings season continues next week, with companies such as IBM ($IBM), Netflix ($NFLX), Intel ($INTC) and P&G ($PG) reporting their results. The European Central Bank is to hold its latest policy meeting against a background of renewed lockdowns to contain the pandemic.
Meanwhile, a raft of PMI data from the U.S, Eurozone, Japan, and the UK on Friday will lay bare the state of the global economy at the start of 2021. Fourth quarter and full year GDP data out of China on Monday could show that it was the only major world economy to have expanded in 2020. Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) underwent a correction of -1.98% (-76 points), with majority of the losses experienced on Friday after market missing the estimates of US. Retail Sales for December (-0.7% MoM vs 0%. MoM). With the above, the highlighted Bearish Hanging Man candlestick pattern last week is currently in play.
At the current junction, the $SPX remains firmly within the congested 2 months trend channel, with 20DMA supporting the rally since 4th November 2020. The significance of 20DMA towards $SPX daily current price action is also observed in the various rebound highlighted in the chart (arrow), particularly thrice in December 2020 and once in January 2021.
The immediate support to watch for any further weaknesses is at 3,660 level. This level would see $SPX breaking down the highlighted trend channel convincingly, along with the first break of a minor classical support established on the opening week of 2021.
1. Biden bump?
Joe Biden will be inaugurated as the 46th U.S. president Wednesday, taking over the leadership of a country ravaged by the pandemic and facing deep socio-economic divisions.
Biden has announced a $1.9 trillion stimulus package, which includes $1,400 stimulus checks but this may prove a double-edged sword for investors, bolstering optimism over the outlook for the economic recovery while raising worries over how the U.S. will afford it.
The S&P 500 has risen in the first 100 calendar days of eight out of the last 10 presidential terms, but Biden’s first 100 days may be more fraught than those of his predecessors. He needs to stimulate the economy quickly, but the narrow Democrat majority in Congress means the size and timing of the package remain uncertain.
2. Earnings
Investors will be anxious to see whether upcoming earnings results validate expectations for a strong rebound in 2021.
U.S. stocks are at record highs, boosted largely by optimism that the vaccine rollout will allow for a recovery, while hopes of more fiscal stimulus have also underpinned gains.
Earnings reports for the last quarter of 2020 will get underway in earnest with the release of results from companies including Bank of America ($BAC), Goldman Sachs ($GS), Netflix ($NFLX), Charles Schwab ($SCHW), Procter & Gamble ($PG), United Airlines ($UAL), Intel ($INTC) and IBM ($IBM).
Earnings for S&P 500 companies are expected to decline 9.5% in the final quarter of 2020 from a year ago, but are expected to rebound in 2021, with a gain of 16.4% projected for the first quarter, according to IBES data from Refinitiv.
3. ECB meeting
The ECB is to hold its first meeting of 2021 on Thursday. Policymakers announced extra stimulus in December, but the economic outlook has been clouded again by the discovery of new Covid-19 strains and the relatively slow pace of the vaccination rollout.
Cause for concern? Not so, comments from Christine Lagarde suggest. The ECB chief predicts recovery as COVID subsides, seeing the glass as half-full, not half-empty. Germany’s economy too is cause for optimism, shrinking by a less-than-expected 5% in 2020.
But prolonged lockdowns will hurt. Against this backdrop, markets will want the ECB to signal its commitment to using the full firepower of its 1.85 trillion-euro ($2.24 trillion) emergency bond-buying scheme – something on which policymakers appear to be split.
US Market Technicals Ahead (11 Jan – 15 Jan 2021)Market will likely be focusing on the prospects for a bigger stimulus package after Friday’s employment report showed the U.S. economy shed jobs for the first time in eight months in December amid a resurgence of Covid-19 infections. A further snapshot of how the economy is performing will be presented with upcoming Friday’s release of data on inflation and retail sales.
Additionally, earnings season will get underway with major US banks set to release fourth quarter earnings results on Friday.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) continued with a 3rd consecutive week of rally, closing with a modest gain of +1.83% (68.6 points) for the opening week of 2021. This rally have continued to establish a new all time high level at 3,826 points, also breaking out of a 9 weeks trend channel congestion that was highlighted over the weeks.
With plenty of eutrophic moves in highly speculative themes over the past weeks (i.e. Electric Vehicles, Bitcoin, Alternative Energy and Biotechnology), there were observation that some of the previously market-leading mega cap companies are not in participation of the week’s rally. Several of the higher profile companies, particularly the FAANG, remain either in a consolidated triangle chart pattern, or a box ranged rectangular chart pattern. Additionally, $SPX traded lower on the first two days of the year, with the month long highest sessional volume observed on Tuesday alone.
At the current junction, the 20DMA have been nicely supporting $SPX in rally since 4th November 2020. The significance of 20DMA towards $SPX daily current price action is also observed in the various rebound highlighted in the chart (arrow), particularly thrice in December 2020 and once in January 2021. There is also a significant pick up in trading volume since the start of 2021, and it is imminent for market volatility to further uptick towards a 50 points ATR14 range within the next two weeks.
The immediate support to watch for any potential weaknesses is at 3,780 level, a confirmation retracement for Friday’s Bearish Hanging Man candlestick pattern.
Top 3 things to watch this week:
1. Stimulus hopes
Stocks closed at record highs on Friday, despite data showing the U.S. economy suffered its first net loss of jobs in eight months in December, after Biden said his economic relief package will be in the trillions of dollars.
Biden said his administration’s economic package will also include unemployment insurance and rent forbearance. The package is due to be unveiled on Thursday.
2. Economic data, Fed speakers
The U.S. is due to release data on consumer price inflation on Wednesday, while retail sales figures for December are due out on Friday. Inflation is expected to tick slightly higher, but remain subdued, while retail sales are expected to have been dampened by the surging virus.
Fed Chair Jerome Powell is to speak on Thursday. The U.S. central bank has indicated that interest rates will remain on hold near zero through at least 2023 and said the path of the economy will depend significantly on the course of the virus.
3. Banks kick off earnings
Big banks will kick off the U.S. corporate earnings season in earnest with JPMorgan (NYSE: $JPM), Citigroup (NYSE :$C) and Wells Fargo (NYSE: $WFC) posting fourth-quarter results on Friday – the first S&P 500 companies to report for the last quarter of coronavirus-stricken 2020.
Some investors expect company earnings and economic data to play a greater role in moving stock prices this year.
US Market Technicals Ahead (21 Dec – 25 Dec 2020)The Federal Reserve announced on Friday evening that it will allow the nation’s big banks to resume share buybacks in the first quarter of 2021 subject to certain rules. Bank Stocks rose across the board in post-market trading with $JPM (JP Morgan) +5.3%, $GS (Goldman Sachs) +4.4%, and $WFC (Wells Fargo) +3.5%.
Going into the holiday-shortened Christmas week there will still be plenty to watch out for in markets as
i) Investors await the vote on a $900 billion coronavirus aid package;
ii) Vaccine rollout effort will widen after Moderna’s COVID-19 vaccine became the second to receive FDA approval;
iii) Monday could see some stock market volatility following Tesla’s addition the S&P 500, as index funds adjust holdings to match the benchmark’s rejig, and
iv) Brexit negotiations are in the endgame, putting a trillion dollars worth of trade at risk from tariffs and quotas.
Here’s what you need to know to start your week.
S&P 500 (US Market)
The benchmark index ($SPX) have successfully rebounded from the Bullish Reversal Hammer highlighted last week, totaling a gain of +1.80% (+65.8 points). The rally have also seen S&P500 closed the week establishing a new all time high of 3,725 level. Volatility of the index continues to pull lower, with ATR-14 now heading towards September low of 40 points per day ATR-14.
With S&P500 remains trading within a 3% trend channel range established since 10th November, the technical strength of the market remains bullish for a continuation rally towards 3,750 level in the upcoming week.
The immediate support to watch for any signs of weakness is at 3,660 level, an initial break of the trendline support.
Top 3 things to watch this week:
1. Stimulus on the way?
The U.S. Congress appears close to a vote on a $900 billion coronavirus relief package, after lawmakers reached a last-minute compromise to overcome one of the final obstacles to a deal.
Congressional leaders plan to attach the stimulus package to a $1.4 trillion bill to fund government spending through September 2021. A new government funding deadline is set to expire at midnight Sunday (0500 GMT Monday), risking a government shutdown without a vote.
The coronavirus aid package is expected to include one-off $600 checks for most Americans, enhanced unemployment benefits of $300 per week, help for states distributing coronavirus vaccines and more assistance for small businesses.
2. Tesla shakeout
Investors may see some volatility on Monday when Tesla ($TSLA) begins trading as part of the S&P 500 as index funds adjust their portfolios to match the benchmark’s shakeup.
Tesla shares have rallied almost 700% year-to-date, placing its stock market value at around $600 billion. It is the world’s most valuable auto company, despite having output that is just a fraction of rivals Toyota (NYSE:TM), Volkswagen ($VOW) and General Motors ($GM).
Some analysts say its share price is far ahead of fundamentals and there is plenty of debate on how the stock will perform from here on out.
3. Brexit deadline looming
With less than two weeks left to go before Britain exits the European Union when the transition period ends on Dec. 31 there is still no trade agreement in place, putting a trillion dollars worth of trade at risk from tariffs and quotas.
The talks are still deadlocked on two issues – the EU’s fishing rights in British waters and creating a so-called level playing field providing fair competition rules for both sides.
Both sides need to get any deal approved by their parliaments, and with the talks in their final stages, it is expected that any conclusion will most likely come before Christmas.
SPX500 IS STILL STRONG however another moderate pullback can happen in short term before going up over 4000.
SPX Final Shot looking for one more upleg before going down again.
look for sells at 3350-3400 .
not likely but ; if SPX hits above 3400 then uptrend may expand further.
good luck.
S&P 500Prices reached perfectly, with a 200 ema touch to the tee. Now we see intraday opportunity to find good buy setups, unless the daily chart show us a break of this level, if this is the case we change our scenario to sell trades. Good week everyone.
Sniper Tariy
