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U.S. indices continued to sell off as the year draws to a close, after moving higher in early morning trading only to turn red once again. Yesterday, U.S. stocks experienced a volatile day in the markets as Tesla and Apple felt the brunt of bearish trading. Bond yields simultaneously climbed during this same time period. On Wednesday, the stock market tumbled in light trading as traders weighed the effects of China’s recent easing of Covid-19 restrictions. In addition, the increased yields of bonds have been a detriment to equities. The yield on the benchmark 10-year US Treasury note hit its highest level since mid-November on Tuesday and has remained above 3.8% ever since then. There are no notable earnings this week. Next week, economic activity is set to pick up with additional key economic reports and the start of the latest earnings season.
As the year draws to a close, next week’s taxes and jobless figures could have an impact on what direction markets will take. We are watching the overhead resistance levels in the SPY, which are presently at $390 and then $402. The $SPY support is at $380 and then $370. We expect the market to continue to make new lows for the next 2-8 weeks. We would be BEARISH ON THE MARKET at this time and encourages subscribers to hedge their positions. Globally, both Asian and European markets closed to mixed results. Market commentary readers should maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, PSQ. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $ 78.63 per barrel, down 0.43%, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $68.58 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is down 0.20% at $1812.10 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $167.91 at the time of publication. Vector signals show -0.18% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is UP at 3.884% at the time of publication.
The yield on the 30-year Treasury note is UP at 3.974% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $22.14 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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