- Posted by Greg Harmon
- on December thirty first, 2023
Last week, the evaluate of the macro market indicators seen with solely 4 buying and selling days left in 2023, fairness markets continued to point out energy. Elsewhere appeared for Gold ($GLD) to proceed its transfer larger whereas Crude Oil ($USO) prolonged a brief time period transfer to the upside. The US Dollar Index ($DXY) continued to float to the draw back whereas US Treasuries ($TLT) continued their brief time period uptrend.
The Shanghai Composite ($ASHR) appeared to proceed the development decrease whereas Emerging Markets ($EEM) had been again in broad consolidation. The Volatility Index ($VXX) appeared to stay very low and secure making the trail simpler for fairness markets to the upside. Their charts continued to look sturdy, particularly on the longer timeframe. On the shorter timeframe there was now some rotation out of including to the $QQQ and $SPY to placing new cash into the $IWM.
The week performed out with Gold pushing as much as a brand new all-time excessive whereas Crude Oil stalled at a decrease excessive and dropped again. The US Dollar continued decrease whereas Treasuries began to point out indicators of a stall of their uptrend. The Shanghai Composite discovered help and bounced whereas Emerging Markets rose again to retest the December excessive. Volatility dropped again from the spike larger the prior week.
This eliminated the stress on equities they usually responded with a 3 day transfer larger. All bumped into revenue taking on the finish of the week. This resulted within the SPY and QQQ ending barely off their all-time highs. The IWM cracked long run consolidation and now seems to attempt to maintain that break. What does this imply for the approaching week? Let’s take a look at some charts.
SPY Daily, $SPY
The SPY got here into the week weathering a pullback and rising towards a retest of the all-time excessive from December 2021. It continued larger Tuesday by Thursday, stopping simply shy of a brand new excessive earlier than some revenue taking to finish the week and 2023. every day chart exhibits the RSI is pulling again out of overbought territory with the MACD degree and constructive. Both are at ranges the place reversals have occurred with the RSI diverging decrease.
The weekly chart exhibits the value motion persevering with larger alongside the Bollinger Bands®. The goal out of the Cup and Handle is to 570 above. The RSI is rising within the bullish zone with the MACD constructive and rising. These recommend the doable correction from the every day chart may simply be some chop or sideways motion. There is resistance at 478.50. Support decrease comes at 473 and 471 then 470 and 466 earlier than 463.50. Uptrend.
SPY Weekly, $SPY
With 2023 within the books, fairness markets confirmed main energy with a robust transfer larger within the Nasdaq all yr that surpassed the big cap S&P 500 transfer that began in late 2022. Elsewhere search for Gold to proceed its uptrend whereas Crude Oil continues to maneuver decrease. . The US Dollar Index seems to proceed to float to the draw back whereas US Treasuries stall of their uptrend. The Shanghai Composite seems to bounce in its development decrease whereas Emerging Markets consolidate in a broad vary.
The Volatility Index seems to stay very low and secure making the trail simpler for fairness markets to the upside. Their charts look sturdy, particularly on the longer timeframe. On the shorter timeframe the SPY, the QQQ and the small cap IWM may use a reset on momentum measures as all are prolonged. The IWM is pulling again with the SPY and QQQ wanting weak within the brief time period. Use this info as you put together for the approaching week and commerce’em effectively.
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