Well, folks, it isn’t exactly an electric morning. The only news of note, and it’s fairly middling at that, is the unemployment claims, which came in somewhat higher than expected.
Wander
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Let’s Resume
Good morning, fellow Slopers, and welcome to a new trading week. In sharp contrast with last week, this one will be very light on………..everything. We don’t have an avalanche of economic data, the FOMC, the jobs report, or a billion earnings to deal with. We’ve gone from waiting breathlessly for the likes of AMZN and AAPL and instead contend merely with big white balloons being shot down by F-22s and earnings data from such nobodies as Vertex and Mettler-Toledo.
Right from the Sunday open, equities have been slowly slipping lower, although, in typical fashion, the sugar-addicted bulls have been trying to bid things up for the past few hours.
A Good Day To Bet Against Stocks
Stalled ‘n’ Sassy
For me, this market has become an endurance contest, as we muddle through this brutal counter-trend rally. This post has a specific theme: relatively young stocks which had a horrid 2022 but bounced strongly in recent weeks. However, and this is what gains this admission to this post, they seem to have stalled, having executed the easy parts of their bounce. I wouldn’t touch any of these with a ten foot pole, but they’re interesting to watch.
Very Important Resistance Area Here
The possible H&S I was looking at on Friday morning didn’t form and the move to retest the prior high has done some interesting technical damage to the bear case, so I wanted to have a look at that this morning.
The SPX hourly chart below shows the break over declining resistance from the all time high, which held perfectly at the December highs and established a high quality three touch resistance trendline.
On the bigger picture there is also a decent case that a falling wedge has formed from the all time high on SPX that could be a bull flag. That flag wedge would have underthrown bullishly at the October low and this might therefore be the start of a break up towards a possible retest of the all time high.
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